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The Daintree’s Bitter Sweet Treat:
How Sustainable is Australian Origin Chocolate?
Rudee, Talia
Academic Director: Brennan, Peter
Project Advisor: Cuming, Peter
Whitman College
Environmental Sociology
Mossman, Queensland, Australia
Submitted in partial fulfilment of the requirements for Australia:
Sustainability and Environmental Action, SIT Study Abroad, Spring 2013
ii	
  
ISP Ethics Review
This ISP paper by ____________________________________________ (student) has
been reviewed by _Peter Brennan______________________________ (Academic Director)
and does/does not* conform to the ethical standards of the local community and the
ethical and academic standards outlined in the SIT student and AD handbooks.
*This paper does not conform to standards for the following reasons:
Academic Director: Peter Brennan
Signature:
Program: Australia: Sustainability and Environmental Action
Date:	
  May	
  9th	
  2013	
  
iii	
  
Abstract
This study determined the sustainability of the fledgling cocoa industry in Australia based
on the Quadruple Bottom Line (QBL) of sustainability consisting of ecological, social,
economical, and governance elements. Each element was considered within each stage of
production (growing, fermenting and drying, processing/manufacturing, and marketing) and the
level of sustainability was assessed by a rating system from 1 to 5 (1 poorly sustainable, 5 very
sustainable). Currently, most of the cocoa producing countries have very poor infrastructures
and are classified as third world, adopting many unsustainable practices. Cadbury Schwepps, a
major multinational chocolate company, was concerned about the sustainability of the global
cocoa market with demand greatly increasing and proposed a study to research the feasibility of
growing cocoa in Northern Australia. The most successful trial site was in Mossman,
Queensland, where Daintree Estates has marked its territory, the world’s first commercial
chocolate company to make single origin Australian chocolate. Daintree Estates served as the
unit of analysis for the entire industry. I interviewed six people in conjunction with three
sessions of participant and indirect observation, and content analysis of marketing materials.
The marketing stage was the most sustainable stage of production with overwhelming success of
Internet and television publicity and a future idea to market a “Journey around the Pacific.” The
social element of the QBL was the most sustainable element with ultimate satisfaction with the
cocoa industry among stakeholders and good community outreach. My research revealed, overall
that the Australian cocoa industry does in fact have a sustainable edge on the global cocoa
industry and, in the future, will serve as a leader in education and empowerment for smallholder
farmers in many traditional growing countries.
Keywords: Sustainability, cocoa industry, Quadruple Bottom Line
Codes: Environmental Studies – 537, Agriculture – 602, Food Science and Technology – 607,
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Table of Contents
1.0 Introduction..................................................................................................... 1
1.1 History of Cocoa .................................................................................. 1
1.2 The Concept of Sustainability and Cocoa............................................. 3
1.2.1 Cocoa’s Social Sustainability.............................................. 4
1.2.2 Cocoa’s Ecological Sustainability....................................... 4
1.2.3 Cocoa’s Economic Sustainability......................................... 5
1.2.4 Cocoa’s Sustainability in Governance ................................. 5
1.3 History of Australian Cocoa Industry .....................................................7
1.4 The Role of Daintree Estates....................................................................8
1.5 Purpose of Study.......................................................................................9
2.0 Methodology ...................................................................................................... 10
2.1 Choosing Daintree Estates ...................................................................... 10
2.2 Choosing Locations of Study and Duration of Stays ............................... 10
2.3 Finding Interview Subjects........................................................................ 10
2.4 Designing and Conducting Interview Questions....................................... 12
2.5 Using Participant and Indirect Observation............................................. 13
2.6 Conducting Content Analysis..................................................................... 14
2.7 Organization of Data and Paper ............................................................... 15
2.8 Challenges and Limitations ....................................................................... 16
2.9 The Research Participants.......................................................................... 17
3.0 Results and Discussion........................................................................................... 17
3.1 The Sustainability of the Growing Stage...................................................... 18
3.1.1 Ecological – Growing….............................................................. 18
3.1.2 Social – Growing…..................................................................... 21
3.1.3 Economic – Growing….................................................................22
3.1.4 Governance – Growing…............................................................. 23
3.1.5 Growing Culture of Sustainability…............................................ 24
3.2 Sustainability of Fermenting and Drying in the Australian…........................ 25
3.2.1 Ecological – Fermenting and Drying…........................................ 25
3.2.2 Social – Fermenting and Drying…............................................... 26
3.2.3 Economic – Fermenting and Drying……………........................... 28
3.2.4 Governance – Fermenting and Drying…..................................... 28
3.2.5 Fermenting and Drying Culture of Sustainability........................ 28
3.3. Sustainability of Processing/Manufacturing in the Australian Cocoa Industry
...................................................................................................... 29
3.3.1 Ecological – Processing/Manufacturing…................................. 29
3.3.2 Social – Processin/Manufacturing….......................................... 30
3.3.2 Economic – Processing/Manufacturing…................................... 31
3.3.4 Governance – Processing/Manufacturing…................................ 32
3.3.5 Processing/Manufacturing Culture of Sustainability…................ 32
3.4 Sustainability of Marketing in the Australian Cocoa Industry....................... 33
3.4.1 Ecological – Marketing…............................................................. 33
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3.4.2 Social – Marketing…................................................................... 33
3.4.3 Economic – Marketing …………………………............................ 34
3.4.4 Governance – Marketing….......................................................... 34
3.4.5 Marketing Culture of Sustainability …........................................ 35
3.5 Case Study Comparison: Sustainability Culture of the Cocoa Industry in
Ghana…………..................................................................................................... 36
3.5.1 Ecological – Ghana…................................................................. 36
3.5.2 Social – Ghana…......................................................................... 37
3.5.3 Economic – Ghana…................................................................... 38
3.5.4 Governance – Ghana…............................................................... 39
3.5.5 Culture of Sustainability – Cocoa Industry in Ghana….............. 39
4.0 General Discussion ................................................................................................... 39
5.0 Conclusion ................................................................................................................ 41
5.1 Key Points ….................................................................................................. 42
5.2 Recommendations…………………………………………………........................ 43
5.3 Further Research…......................................................................................... 44
6.0 References ..................................................................................................... 45
7.0 Appendices ..................................................................................................... 47
	
  
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Acknowledgements
I would first like to thank my family, Gail, Don and Alex Rudee. Throughout all of this often
very difficult work, you all believe in me more than I could ever believe in myself. It is because
of you all I keep going strong.
Thank you Peter Cuming, my excellent adviser. I appreciate your enthusiasm, ability to
understand how I think, extensive help, and your patience.
To Louise and Bennett Walker, and the rest of the family -- Thank you for taking time out of
your days to drive me to my research sites and show me the magnificent area. I felt extremely
welcome in your home and I will remember my experiences staying with you for the rest of my
life.
To Sylvia Gooch -- Thank you for taking me into your home in Melbourne and helping me get
all of the information I needed.
To the Daintree Estates crew -- It is a wonderful company and I enjoyed the time spent with each
and every one of you. It didn’t even feel like I was researching but meeting new friends.
Finally, I would like to thank Jesse Abrams and Helen Kim – Thank you for being such a
supportive mentor and adviser while I am so far away. Jesse, your classes inspired me to be on
this program. And Helen, you have been so extremely supportive and helpful while I have been
away.
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1.0 Introduction
Cocoa growing is a new industry in Australia. Many traditional cocoa growing countries
around the world, such as the Côte D’Ivoire, Ghana, Brazil and Indonesia, have unsustainable
aspects in their cocoa industries due to negative effects on the social, ecological, economical, and
governance aspects in the industry. For example, cheap labor is often the foundation of the cocoa
industry, which results in cocoa farmers’ poor livelihoods (Diczbalis 2010, p.1). Ecologically,
full-sun cocoa production and mono-crop horticulture both contribute to degradation of the
natural environment and biodiversity (Franzen & Mulder 2007, p.3838). Both have decreased
crop diversity and therefore, decreased economic security of smallholder farmers (Franzen &
Mulder 2007, p. 3840). Economically, cocoa growers only receive about 6 percent of the price
paid by consumers in rich countries (Fairtrade Foundation 2011, p.2). In terms of governance,
only ten companies dominate the world cocoa market, receiving about 70 percent of the money
of the final value of a chocolate bar, while, for example, growers in Ghana, “many of whom have
never tasted chocolate…are likely to receive just 3.5 to 6.4 percent of the final value of a
chocolate bar” (Fairtrade Foundation 2011, p.6). The Australian cocoa industry offers a unique
model for the cocoa industry worldwide based on its potential to be carried out sustainably by
vertically integrating growing and processing without dependence on large corporations
(Diczbalis 2010, p.xxii). Daintree Cocoa Pty. Ltd. (Daintree Estates) is the world’s first
company to commercially produce Australian chocolate made from locally grown cocoa (Davies
2013 pers. comm., 13 March) and therefore, will serve as the basis for this study to examine the
sustainability of the fledgling cocoa industry in Australia.
1.1 History of Cocoa
Cocoa must grow in tropical areas within 15° of the equator, which in most cases, includes
developing countries (Diczbalis et al. 2010, p. 1). The cocoa plant (Theobroma cacao) is native
to South America, traditionally serving as a ritual beverage for the ancient Mayans during
Marriage ceremonies (World Cocoa Foundation undated).
In 1528, the Spanish Conquistador, Don Hernán Cortés, brought cocoa beans back to Spain
(Kraft Foods Australia Pty Ltd. 2013). For about 100 years after the Spaniards were introduced
to chocolatl, “the coveted drink of New World inhabitants” (World Cocoa Foundation undated),
they kept the special treat a secret. Eventually, after one century, Spain lost their European
2	
  
cocoa monopoly and the bean was introduced to the rest of Europe (World Cocoa Foundation,
undated). By the 1600s, the chocolatl was very popular in France as a delicious healthful food
that was available to the wealthy (World Cocoa Foundation, undated). By the 18th
century, every
European country jumped on the cocoa bandwagon (World Cocoa Foundation, undated). Shortly
after, the invention of the steam engine revolutionized cocoa, making it easy and more efficient
to grind the beans, leading to a reduction of production costs and affordable chocolate (World
Cocoa Foundation, undated).
Cocoa production took off in the 20th
century and today, is one of the world’s most traded
food commodities (Diczbalis et al. 2010, p. 1). World cocoa use has increased steadily at about
3.5% per annum since 1920 with the 1970s high price boom ultimately stimulating industry
expansion and oversupply in the 1980s (Diczbalis et al. 2010, p. 1). As shown in Figure 1, even
in the new millennium the supply and demand for cocoa has steadily increased, while currently
there is a cocoa deficit.
Figure 1 Supply, production, surplus, and deficit of the global cocoa market
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Today, the world consumes about 3 million tons of cocoa annually (World Cocoa
Foundation, undated). Humans love to consume cocoa in the form of baked goods or candy,
whether it be chocolate cake, M&Ms, or a chocolate chip cookie, chocolate is in so many of the
world’s favorite treats. With this large consumption rate, the cocoa industry has evolved to
include access to cheap and plentiful labor (Diczbalis et al. 2010). 70% of the world cocoa
supply is from West Africa and is mostly produced by smallholder farmers (Diczbalis et al.
2010, p. 1). These farmers are typically small, family or village run operations that utilize low
wages (Diczbalis et al. 2010, p.1-4).
1.2 The Concept of Sustainability and Cocoa
According to environmental educator Ted Trainer, sustainability must involve “small
local economies in which people participate collectively to run their economies to meet needs
using local resources, and in which the goal is a high quality of life and not monetary wealth”
(2010). Therefore sustainability must involve a balanced society with social, ecological, and
economic aspects all working together above a foundation of governance. This ultimately
achieves what is known as the “Quadruple Bottom Line” (QBL). According to Richard J.
Lumsden, “The Quadruple Bottom Line adds the dimension of culture to the other three
dimensions [(social, ecological, and economic)]…This concept encapsulates all aspects of the
culture of an organization e.g. ethics, governance, etc” (2003).
A sustainable cocoa industry must encapsulate the QBL concept through the following
aspects as written by H-Y Shapiro and E.M. Rosengquist:
 …cocoa grown under a diverse shade canopy in a manner that sustains as much
biological diversity as is consistent with economically viable yields of cocoa and other
products for farmers
 …constructive partnerships that are developed to involve all stakeholders with special
emphasis on small-scale farmers
 …effective policy frameworks to support these partnerships and address the particular
needs of smallholder farmers for generations to come
 encourag[ing] future cocoa production that rehabilitates agricultural lands and forms
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part of a strategy to preserve remnant forests and develop habitat corridors
 maximiz[ing] the judicious use of biological control techniques of integrated
management of pests, disease, and other low-input management systems (2004,
p.456).
1.2.1 Cocoa’s Social Sustainability
Cocoa often determines farmers’ livelihoods in the third world traditional cocoa growing
countries. According to Talia Alongi, one of the world’s largest cocoa producers, the Côte
D’Ivoire exports about 1.3 million tons of cocoa beans, which consists of 35% of the cocoa
consumed worldwide. The Côte D’Ivoire and most other cocoa growing countries are
developing countries with unstable economies. According to Alongi, the Côte D’Ivoire’s
economy “relies on cocoa export taxes, which are negatively affected by a fluctuating and
unstable world price” (2010, p.66). Therefore, the country must keep its cocoa exports high in
any way possible to keep government revenue high. The average size of a cocoa farm is 2.8
hectares in the Côte D’Ivoire and therefore, requires family farming with such a small size. Of
about 200,000 children who work on those farms only 5,120 of those children are legally
employed full-time and 64 percent of the overall total are under the age of 14. The issue with
this child labor is that children working on the farm generally do not have access to education
and work under very poor conditions for very little or no pay. Poor conditions consist of putting
children in danger, such as using machetes to cut crop and applying chemicals/pesticides without
health protection (2011, p.62-67). These are unsustainable social practices, which occur in many
of the cocoa growing countries.
1.2.2 Cocoa’s Ecological Sustainability
Different methods of growing cocoa exist, and determine much of the ecological impact
the cocoa industry makes in its initial stages. According to Margaret Franzen and Monique
Borgerhoff Mulder, there are four different strategies used in growing cocoa. The “rustic cacao”
method thins forests with the cocoa planted beneath the remaining canopy of the native trees.
The cabruca thins native trees “to approximately 10% of their native abundance” (2007, p.3837).
This is generally the method used in Brazil. “Planted Shade” has “greater intercropping of cocoa
trees with fruit trees, commercial timber, or fast-growing shade trees” (2007, p.3837). Finally,
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there is full-sun cocoa growing, which is increasingly growing in popularity in the global cocoa
industry. With this, there are no shade trees around the cocoa plantation (2007, p.3837).
According to Yann Clough, Heiko Faust, and Teja Tscharntke, there is a biodiversity
crisis in the tropics and with cocoa’s large land use based on world demands for the product, the
industry must think about how to be more sustainable. Cocoa and coffee are the most common
agro forestry crops taking over about 17.7 million hectares in the tropics. Recent reviews show
that biodiversity in these agro forests do, however, have the potential to make a slight comeback
and contribute to conservation and restoration in the tropics (2009, p. 197). Shaded cocoa is
more species rich, however, the industry has shifted to full-sun methods in many cocoa-growing
regions (Franzen & Mulder 2007, p. 3837). For example, in Sulawesi, Indonesia, the boom in
cacao worldwide has caused the industry to encroach on biodiversity hotspots and move toward
“accelerated shade removal.” This has reduced the richness of bird species (Clough & Faust &
Tscharntke 2009, p. 197). Farmers moved towards desperate measures like shade removal since
in places like Sulawesi, cocoa plays a very important role in their income (Franzen & Mulder
2007, p. 3835-3849). This also leads to other measures such as fertilizer use. According to
Ntiamoah & Afrane, “ cocoa production makes the largest contribution to the environmental
impacts of eutrophication, ozone layer depletion, freshwater aquatic eco-toxicity, human toxicity,
and terrestrial eco-toxicity, with average contributions greater than 96%” worldwide (2008, p.
1737).
1.2.3 Cocoa’s Economic Sustainability
In West Africa, a wealthy cocoa farmer with an average family of six or seven people
receives only US$300 to $500 per capita per year, about US$2 per capita per day. Most of the
cocoa growing countries have a low Gross Domestic Product and poor infrastructure and
communications, perpetuating the poor economies (ICCO 2007, p.3). This type of economic
return is not sustainable and dominated by the unsustainable governance of the world cocoa
industry.
1.2.4 Cocoa’s Sustainability in Governance
Only a handful of multinational corporations dominate the global cocoa industry. These
include, Archer Daniels Midland, Cargill Inc, Barry Callebaut, Nestle, Cadbury Schwepps, Mars
6	
  
Inc, Philip Morris, and Hershey Foods Corp (Kaplinsky 2004, p.22). These companies have
effectively integrated themselves into the global cocoa market where they now have
“transformed power relations in commodity markets to the advantage of buyers rather than
producers…A lack of competition along the cocoa supply chain means that farmers capture as
little as 0.5 percent of the retail price of cocoa” (Traoré 2009, p.27) (See Figure 2). Farmers
need to have access to education in order to increase their own credit, develop better
infrastructure, develop better marketing skills and gain technical knowledge that will ensure
independence and a sustainable cocoa industry (Traoré 2009, p.27.) Currently, the industry is
destroying smallholder farmers’ livelihoods because they are not educated and must depend on
large corporations that are exploiting them.
Figure 2 West African cocoa supply chain
Source: Fairtrade Foundation 2011, p.7
7	
  
1.3 History of Australian Cocoa Industry
In 1997 Dr. Barry Kitchen, at the time Research Director of Cadbury Schwepps
(Australia) a major Australian confectionary company, proposed a study to research the
feasibility of growing cocoa in Northern Australia (Diczbalis 2010, p.9). This study was based
on the premise that there is already a thriving world-cocoa market (Diczbalis 2010, p.9).
According to Yan Diczbalis et al. in an Rural Industries Research and Development Corporation
(RIRDC) report, there are “forecasts of sustained increases in demand/consumption of cocoa
products against a backdrop of concentrated supply and risks to production” (2010, p.xvi). For
example, West Africa has had chronic labor shortages as well as increased pests and diseases on
their cocoa crop. Cadbury Schweppes believed that Australia held superior science and
technology, which would be able to make an Australian cocoa industry competitive with those of
the more traditional growing countries. In addition, Australia had the advantage of an existing
“well established cocoa confectionary industry producing product for domestic consumption and
export….There could [also] be complimentary benefits through investing in cocoa processing
facilities in association with sugar mills in northern Queensland” as chocolate often contains
over 50% of sugar (2010, p.xxii) . In addition, Australia would have a grower cooperative or
business structure creating a vertically integrated system with growing and processing, which is
unique to the industry (2010, p. xxii).
According to Diczbalis et al., with three principle trial cocoa growing sites (Northern
Territory, North Queensland, Western Australia) only one has survived, started by Cocoa
Australia but currently managed by Daintree Cocoa Pty. Ltd (Daintree Estates). Mossman is the
only site that has been successful, as trial performance at other sites was either poor or sub-
economic (2010, p.iii). Around the new millennium, the cane sugar industry faced an economic
downturn leaving open land that used to be occupied by sugarcane (Mcinerey 2010). Sugarcane
growers then sought out “diversification opportunities [and] cocoa provide[d] a potential new
crop to support the sustainability of the existing cropping and horticulture enterprises in the
region (2010, p.iii). Many of these farmers, became part of the Daintree Estates team. With the
support of Daintree Estates, a commercial entity behind the establishment of 25ha of cocoa
plantations on private grower properties in the Mossman district, Far North Queensland has
sustained its cocoa industry (2010, p.228-230).
8	
  
1.4 The Role of Daintree Estates
Daintree Etates is the world’s first commercial chocolate company to make single origin
Australian chocolate. The cocoa plantations are located in Mossman, Queensland. In the
RIRDC report, the Mossman plantation was found the most successful of the cocoa trial sites in
the study. Cocoa Australia, which originally helped establish the Mossman sites, began with
“linkages with Mossman Mill Company Ltd. (co-operative sugar mill) through a development of
low GI sugar” (Diczbalis 2010, p.228). The company made the decision to “purchase and
process cocoa pods from its grower base and…established an embryonic processing and
fermentation facility” (Diczbalis 2010, p. 228). Currently, Daintree Estates has established it’s
ground as the only commercial Australian cocoa growing company. The company began with a
commitment and passion from its founders and growers, which ensured its success in both
growing and processing cocoa on a commercial scale. This type of “grower co-operative or
business structure…[is] vertically integrated growing with processing, manufacturing and
marketing…captur[ing] the full value of the product” (Diczbalis 2010, p.10). Daintree Estates
has been covered by various local newspapers and featured on television and radio programs
(Daintree Cocoa Pty. Ltd. 2011-2012).
The Australian cocoa industry, however, is not always met with such praise and
enthusiasm. In an article on Tava’s website, an Australian chocolate company, the Australian
cocoa industry is met with opposition based on three principles: 1. It is unnecessary, 2. It is a
waste of precious water in Australia. And 3. It is unfair to the third world countries whose
farmers still struggle to make a living from the profits of cocoa (2006).
Nevertheless, Daintree Estates is not set back, and according to Director, Tim Davies,
Daintree Estates sees their
significance in becoming a cocoa industry leader in the region… actively seeking to
engage with small cocoa producing communities in Oceania countries such as Papua
New Guinea, Vanuatu, Samoa and more. We believe we have a moral and ethical
responsibility to assist these communities gain expertise and grow their cocoa economies,
to give them more leverage against the large multi-nationals who want to control pricing.
We believe we can help them improve their bean quality and operational efficiency to
make them more profitable (2013 pers. comm., 13 March).
9	
  
1.5 Purpose of Study
In 1998, “international cocoa supply, demand and price forecasts were reviewed together
with the current constraints and advantages for an Australian industry” (Diczbalis et al. 2010,
p.9). At a world meeting in 1998, Cadbury Schwepps presented a scenario that within five years,
“world cocoa consumption would be approximately 3,260,000t. Typical market forecasts were
for growth in cocoa consumption of 3% per annum from the emerging and re-emerging markets
of Asia and Central and Eastern Europe and 1.5 to 2% for the mature markets of Western Europe
and North America. At such consumption levels, forecast supplies would potentially be
exceeded and cocoa stocks would be reduced to almost nil” (Diczbalis et al. 2010, p.9).
According to Diczbalis et al., additionally, cocoa quality was diminishing in more traditional
cocoa growing regions like Africa, Brazil and Asia due to political instability, cocoa plant
disease, domestic trade and industry issues in West Africa, and liberalized markets lowered
quality assurance. Cadbury Schwepps was concerned “as a major end user of cocoa” and “made
a compelling case for investigating an Australian Cocoa industry” (Discbalis et al. 2010, p.9).
According to the short documentary, Chocolate Supply Crisis 2012, new reports indicate that
Australia is heading towards a “chocolate supply crisis” (2012). According to David Guest,
Professor of Plant Pathology at Sydney University, “A major international cocoa processor,
Barry Callebaut, recently warned that annual cocoa production in 2020 would have to rise by
25%, or 1 million tons, to keep pace with demand. However our ability to sustain even current
production levels is threatened by climate change, land degradation, pests and diseases,
alternative crops, labour shortages and political instability” (The Conversation 2012).
With all these aspects considered, this rapidly growing luxury industry is important to look at
in relation to “sustainable” development practices. As cocoa rapidly grows as an industry, so
does the use of unsustainable patterns in developing/third world countries such as West African
countries and countries in the Pacific. The goal of my particular study is to take past research
about the sustainability of chocolate one step further in analyzing the unique, emerging industry
in Australia, the only fully developed country that produces cocoa, only recently part of the
global cocoa industry with a vertically integrated production model. What is the role of the
Australian cocoa industry in the global cocoa industry as a whole? What can Australia learn
from other countries and what can other countries learn from Australia?
10	
  
2.0 Methodology
2.1 Choosing Daintree Estates
I chose to do a case study of Daintree Estates when looking at the overall Australian
cocoa industry because after conducting Internet research, I found that Daintree Estates is
currently the only company commercially producing chocolate in Australia through a vertically
integrated model; from bean to bar. After looking on the website, there was contact information
available for me to make initial contact with Tim Davies, Director of Daintree Estates. After
expressing interest via email to Davies, I received positive feedback and enthusiasm. Therefore,
I knew that researching Daintree Estates and approaching the various stakeholders was feasible
and would provide me with a wide range of information for my research study.
2.2 Choosing Locations of Study and Duration of Stays
After initial email contact with Davies, he offered to introduce me to the growers who
supply cocoa to Daintree Estates. I knew, that it would be possible, and most valuable to meet
the growers in person. All of the growing is done in Far North Queensland in Mossman, a small
rural town surrounded by the tropical Daintree Rainforest. Davies began emailed me with
further information about the company and the growers and informed me that after the beans are
dried, they are sent down to Melbourne, Victoria a large city, for the final stages of
manufacturing and creating the chocolate products, which are then sold to the consumer. I then
thought it would be important to spend some time in Melbourne to observe production and
manufacturing, and more effectively analyze the sustainability of Australian cocoa industry as a
whole. I decided to spend three weeks in Mossman and two in Melbourne since Mossman has
four estates to study that do the growing in addition to the fermenting and drying while
Melbourne only has the processing/manufacturing stages to study. Spending more time in the
initial stages of cocoa production would give me information to more effectively compare
Australia as a cocoa growing country to the more traditional cocoa growing countries since they
primarily engage in the first steps of the industry (growing, fermenting, and drying).
2.3 Finding Interview Subjects
After I initially emailed the contact email available on Daintree Estates’ website;
info@daintreeestates.com, I received a response from Davies that said he would connect me to
11	
  
the other interview subjects I needed to sufficiently conduct my research. I made sure I had
subjects who would be able to represent each of the stages involved in the industry and
effectively assess the QBL of sustainability:
Stages involved in the cocoa industry:
 Growing
 Fermenting and Drying
 Processing/Manufacturing
 Marketing
QBL elements
 Social Aspects
Examining how people’s livelihoods and culture are affected by the cocoa industry.
 Economical Aspects
Examining the costs of starting and keeping the industry as well as the economic
return from the chocolate as a final product to all of the stakeholders involved in the
industry.
 Ecological Aspects
Examining the benefits and degradations that the cocoa industry offers to the natural
environment and land.
 Governance Aspects
Examining how larger forces in society influence the industry.
I decided to first go to Mossman, Queensland to see the foundation of Daintree Estates,
where the growing and fermenting and drying stages take place. I decided to start from the
beginning of the industry, therefore, interviewing the growers first. Since my initial contact was
with Davies, the Manager, I utilized a snowball method, and he provided me with Terese
Puglisi’s email. Terese Puglisi is the Sales Representative and part of a cocoa growing family.
Terese then connected me to every other grower in Mossman: Darryl Kirk, a grower and in
charge of the fermenting and drying processed, Don Murday, a grower, and John Goodman, the
only organic grower.
12	
  
Terese then introduced me to different places and people I could study to examine the
marketing strategies of Daintree Estates. For instance, Terese told me to go to “Coffee Works”
that has chocolate samplings and sells Daintree Estates chocolate, and provided me with Suzie
Wharton’s phone number who runs “Chocoholic tours” in Melbourne, and according to Terese,
heavily emphasizes Daintree Estates chocolate and products.
After interviewing those in the industry who are involved in the initial stages of making
Australian origin chocolate, I knew I would need to interview the upper management in order to
effectively examine the industry as a whole. These people are in charge of communications so I
had been communicating with them throughout the planning process of my research project and
already had their contact information. This included the Davies, and the Managing Director,
Lance Sparrow. Both Davies and Sparrow are based in Melbourne and were able to teach me
about and introduce me to the processing and manufacturing stages that happen in the city.
2.4 Designing and Conducting Interview Questions
The QBL served as a basis for designing interview questions. I used the intersection of
each of the QBL elements (social, ecology, economic, and governance) and each of the stages of
cocoa production and manufacturing (growing, fermenting/drying, transport, production,
manufacturing, and marketing) to create a matrix of questions (see Appendix A) as a guide to the
data I needed to collect. The matrix utilizes the combination of the QBL with the concept of a
Life Cycle Assessment (LCA). As described by Augustine Ntiamoah and George Afrane, the
LCA, “determines the potential environmental impacts, throughout a product’s life cycle, from
raw material acquisition through production, use, end-of-life treatment, recycling and to final
disposal (i.e. cradle-to-grave.)” (2008, p.1736).
I designed my interview guides (Appendix B and C) by creating questions that addressed
all the questions in the matrix corresponding to the lifecycle stage the interviewee is involved
with. For example, if I interviewed a grower, I made sure I addressed all of the questions in the
“growing” column. For each intersection of QBL element of sustainability and stage in cocoa
production, I created 2-4 key questions. Note that each interview guide allowed for additional,
impromptu questions and probes depending on the answers the interviewee gave and if they
talked about unknown and unexpected details.
13	
  
I conducted my interviews with the growers at their homes and with Darryl Kirk at the
fermenting and drying site. I conducted the interview with Lance Sparrow at the home where I
was staying in Melbourne as my host works for Daintree Estates. I interviewed a total of six
people. Each interview lasted about fifty to ninety minutes and took place between the dates of
April 6, 2013 to April 24, 2013. I began the interview with a general question, allowing the
interviewee to talk about his/her role in Daintree Estates as a whole. I then moved on to more
specific questions, addressing social aspects, ecological, economic, and governance aspects as it
relates to his/her role in the company, Daintree Estates. I asked these questions as the issue came
up, going with the flow of topics that the interviewee was talking about. I did, however, make
sure I received answers to all the questions in the corresponding questions at the end of the
interview. I always ended with: “Is there anything else you would like to add.” If I found that I
missed critical data when analyzing data after the interview, I emailed the interviewee with brief
questions that could easily be answered. I made audio recordings using my laptop and took
notes on my laptop for each interview.
Before each interview, I ensured the individual signed the written consent form I created
and printed out (See Appendix D).
Interviewing was my primary data collection method. Sustainability encompasses so
many elements, combinations of elements, and complicated opinions of people, that the best way
to ensure I received all the data possible to assess how sustainable the Australian cocoa industry
is while being as objective as possible was to have people talk about it. Sometimes, people came
up with comments that were useful sustainability measures that are unique to Australia and have
never been discovered before, therefore, if I had done a different method like a survey, I would
have limited my own assessment of the industry, only receiving information on selective aspects.
Therefore allowing for extrapolation in an interview and considering all comments ensures for a
more objective and thorough analysis on my part.
2.5 Using Participant and Indirect Observation
Observing a research participant’s work by participating and/or unobtrusively and
indirectly observing was a method I used to fill any gaps of information in an interview and to
experience the work involved in the cocoa industry first hand for a better understanding of the
processes. This was an excellent way for me to gather data as well as give back to the
14	
  
stakeholders of Daintree Estates who so generously put aside hours to help me out with my
study. My participant observation included picking beans on the Whyanbeel Valley and
Goodman Estate, taking the beans out of the pods, turning the ferment of the beans, using the
grader to sort the beans, and bagging the dry beans to get ready to ship. All of my participant
observation included me stepping back and indirectly/unobtrusively observing as well to see how
the workers interact and work without a guest. After each observation I took notes on every
detail that answered a question in the matrix within the appropriate stage and what I observed in
terms of each of sustainability element in the QBL. I then added these notes to my overall notes,
which included those from interviews sorting each note into the appropriate stage and QBL
element. My observations lasted from forty-five minutes to half of the day and were conducted
between April 9, 2013 and April 21, 2013.
Observation allowed for see sustainability of the Australian cocoa industry first hand by
participating in the supply chain. This was not available to do through secondary research since
the practices and equipment were often unique to the industry. In addition, this made it easier to
understand and know exactly how some stages operated since purely hearing it from an
interviewee allows for incorrect interpretation.
2.6 Conducting Content Analysis
The final stage of my research was conducting a content analysis to determine more
information about the marketing stage of the cocoa industry. I gathered newspaper articles,
blogs, websites, brochures, posters, and pamphlets to effectively assess firsthand how marketing
and publicity of the cocoa industry address the elements of the QBL. I took notes on common
and/or similar words and phrases used in the content that addressed the QBL elements. After
analyzing all content, I combined my notes and grouped words and phrases into categories based
on which elements from the matrix of questions it addressed. I counted the results to determine
majorities and added my final findings into the overall notes in the marketing section. For
example, if a majority of the content used words like “sustainable” or “eco-friendly,” I put that
note in the ecological section of the marketing stage.
Content Analysis was necessary to look at the hard facts of marketing and assess the
success in terms of sustainability on my own accord rather than taking the word from the
stakeholders in the industry who may have biases.
15	
  
2.7 Organization of Data and Paper
I organized my data the day I completed a research session of an interview, observation,
or content analysis. When I returned home after a day in the field, I typed up the notes I took in
an organized chart with elements of the QBL intersecting with each stage of production. For the
interviews with the growers, I made a separate chart since the growing stage was more
complicated with four different growers all operating their own way. This chart listed the
growers along the far left column and the QBL elements along the top row. The entire chart was
the growing stage (see Appendix F). I then organized all relevant notes into the appropriate
section. For example, John Goodman mentioned his organic fertilizers. I put organic fertilizers
in the John Goodman row and ecological column. I had a separate chart for all of the other
stages, listing the stages along the far left column and the QBL elements along the top row (see
Appendix G). The final organization of results combined processing, manufacturing and
transportation since they were all related and each had minimal notes.
After all of my research notes were organized into appropriate sections, I analyzed the
results, assigning each note to a sustainability score based on a scoring system I created (see
Appendix E). Using this score system was the best way to represent sustainability since it is a
very loaded term. The score system enabled me to include many different aspects under one
number that appears as a figure that anyone will understand. For the growers, I added up each
individual section (i.e. John Goodman ecological section or Puglisi economical section) and
found the mean average score for each individual section. Darryl Kirk’s interview notes were
placed into both growing and fermenting and drying since he was involved in both stages. Then,
I added up each score for each QBL element average score from each grower and found the
mean average score for each QBL element for the growers overall. For every other stage, I
added up all the scores for each QBL element and took the averages for my final score that
appears in my results. Finally, I added up all of the averages of each QBL element for each stage
to get an overall average score for the sustainability of each stage individually.
In addition to scoring my original research, I also took notes on the four QBL aspects of
the cocoa industry in Ghana from two journal articles. I chose to do a case study of the cocoa
industry in Ghana due to Augustine Ntiamoah and George Afrane’s article, which laid out a Life
Cycle Assessment of the cocoa industry, closely resembling the sustainability assessment I
16	
  
conducted with my original research. I used Doussou Traoré’s article to supplement due to
information missing to effectively compare Ghana’s cocoa industry to the notes I had on
Australia’s cocoa industry. I then organized these notes into the four elements of the QBL and
found overall sustainability scores for each QBL element in Ghana’s cocoa industry. I used my
final scores of Ghana’s industry as an example to show the differences between a traditional
cocoa country and the Australian cocoa industry in sustainability
I organized the body of my paper into six broad sections, five to analyze each stage
within the Australian cocoa industry, and one to analyze the cocoa industry in Ghana as a case
study traditional growing country comparison to Australia. Each broad section consisted of five
subsections, four of which assessing each element of the QBL for that particular stage, and one
of which assessing the overall culture of sustainability for that particular stage. The section on
Ghana had these five aspects as well, but assessing the overall QBL element and culture of
sustainability for the industry. Having each stage isolated enabled me to thoroughly assess the
Australian cocoa industry without making sweeping generalizations and inaccurately analyzing
my data. Including a case study of another country’s industry enabled me to show how Australia
differs from the culture of sustainability of the global cocoa industry (as Ghana is the second
largest cocoa producer (Fairtrade Foudation 2011, p.3)) to make my results more meaningful.
2.8 Challenges and Limitations
My data presented limitations because the Australian cocoa industry is quite small and
only starting out with one company currently growing and producing chocolate commercially.
With this, it was difficult to remain objective during research since most of my information was
coming from stakeholders involved in and passionate about Daintree Estates. I had to be careful
to not create a study that was a promotion of one company rather than looking objectively at the
industry as a whole. In addition, some of the information I needed to gather was unavailable.
For example, I had read that cocoa growing also took place in Innisfail in Far North Queensland.
In order to accurately assess the Australian cocoa industry as a whole, I would need to research
all places involved. I was not able to find any contact information for the growers in Innisfail
after asking around and researching online. Furthermore, due to Daintree Estates’ use of outside
companies for processing and manufacturing, such as Melba Coffee & Tea, Corvina, and Mariott
Industries, even after initial approval to go to Melbourne to see these places in action, the
17	
  
companies schedules were unpredictable. I was not able to see processing/manufacturing stages
in person due to the companies’ unplanned conflicts. I ended up asking Lance Sparrow for
information about those companies, which I recognize will introduce biases. I searched for
information on the Internet and there was no sources on the information I needed so Sparrow was
the only source available.
2.9 The Research Participants
The research participants, primary affiliation, and role in the study are separated into the
different locations of work with Daintree Estates.
 Mossman, Queensland, Australia
o Gerard Puglisi – Cocoa Grower and Grower Director (interviewed, participant
observation)
o Terese Puglisi – Sales Representative (interviewed)
o Don Murday – Cocoa Grower (interviewed)
o Darryl Kirk – Cocoa Grower, Manager of fermenting and drying beans
(interviewed and participant observation)
o John Goodman – Organic Cocoa Grower (interviewed and participant
observation)
o Vicki Ward – Removes beans from pods (indirect and participant observation)
o Jan Ward – Removes beans from pods (indirect and participant observation)
 Melbourne, Victoria, Australia
o Lance Sparrow – Managing Director (interviewed)
o Tim Davies – Director (extensive email communication)
3.0 Results and Discussion
Results are presented as average scores of scored notes from interviews, observations,
and a content analysis combined. The notes were assigned to categories in the matrix of
questions and subsequently, fit into a category within the sustainability score chart (see
Appendix C) to determine the final score. Each note, in each category of the matrix was
combined and an average for each category as well as for an overall culture of sustainability was
calculated. The scores mean the following in terms of sustainability:
18	
  
1: poorly sustainable
2: some sustainable efforts
3: good sustainable efforts
4: mostly sustainable
5: very sustainable
Discussions are integrated throughout the results in the “culture of sustainability”
subsection for each stage of the Australian cocoa industry.
3.1 The Sustainability of the Growing Stage
The growing stage combines four different growers and their estates, (Terese and Gerard
Puglisi of Whyanbeel Valley Estate, Darryl Kirk of Shannonvale Estate, Don Murday of Mango
Park, John Goodman of Goodman Estate) whom had operations which varied slightly from their
fellow growers. This stage was the least sustainable stage of the cocoa industry in Australia,
with an overall score of 3.56, still, however, falling between good sustainable efforts and mostly
sustainable.
3.1.1 Ecological – Growing
Overall ecological sustainability for growing in the Australian cocoa industry is 3.37.
For example, the Puglisis utilize equipment from the cane farm, therefore not purchasing or
using unnecessary resources for manufacturing equipment. This received a score of 4. Darryl
Kirk’s farm does not use a lot of fertilizer since, according to Kirk, it breaks down easily and
quickly with sun and water, which received a sustainability score of 3.
Patterns
All of the growers had cleared land already available to them to start a cocoa plantation,
therefore not diminishing biodiversity in the Daintree rainforest. If not used for cocoa, the land
would have been wasted. Every grower received a score of 4. This fit into the category on the
scoring chart of “biodiversity is not harmed, regeneration may be slightly present” under 4,
ecology, and growing on the sustainability scoring chart. All growers did have a mono-crop
cocoa plantation with the same set up. See Figures 2 through 5.
19	
  
Figure 3 Whyanbeel Estate Figure 4 Shannonvale Estate
Figure 5 Mango Park Figure 6 Goodman Estate
Variations
The grower’s use of fertilizers varied and all growers had a different type of water pump
for irrigation. Three out of the four growers (The Puglisis, Don Murday, and Darryl Kirk)
mentioned the use of chemical fertilizers on their cocoa trees. They all alluded to the fact that
not a lot of fertilizer is required and rarely needs to be sprayed. All three were confident in the
fact that they would never go organic. Don Murday even mentioned that he plans to go “eco”
20	
  
using less toxic fertilizers. For all three, their fertilizer use received a sustainability score of 3.
John Goodman differed from the other growers, very committed to organic growing even with
trouble with the Malaysian Pod Borer pest that recently wiped out all of his trees. John
Goodman’s use of organic fertilizers received a sustainability score of 5. Being organic does
bring difficulties as well. Goodman is susceptible to many pests like the pod borer, which
reduces his growing efficiency. The swarming black beetle (Rhyparida) and fruit spotting bug
(Amblypelta nitida) (see figure 7 and 8) are two common pests that greatly damage the fruit (see
figure 9). This pest susceptibility received a score of 2.
In terms of water pumps for irrigation, the Puglisis and Don Murday use a diesel pump,
and received a sustainability score of 3 since the water source is close, requiring less energy.
John Goodman has an electric pump, which pumps water from underground and received a score
of 3. Darryl Kirk also has an electric pump but mentioned his desire to use solar energy for the
pump in the future, and received a sustainability score of 4. See figure 10 for example of a water
pump.
Figure 7 Swarming black beetle (Rhyparida) Figure 8 Fruit spotting bug (Amblypelta nitida)
– common pest – common pest
21	
  
Figure 9 damaged fruit from fruit spotting bug Figure 10 Puglisis’ diesel water pump
3.1.2 Social - Growing
Overall social sustainability in the growing stage scored 4.04, the highest overall scored
QBL element amongst the growers.
Patterns
Every grower alluded to the job of growing cocoa as rewarding in some way. Don
Murday said, “cocoa is very satisfying to grow, especially being one of the first in Australia to
grow it.” This comment received a sustainability score of 5. Darryl Kirk called cocoa growing a
“hobby,” which received a sustainability score of 4. Terese Puglisi mentioned that her children
greatly enjoy picking with her and Gerard Puglisi. In Jetstar Magazine’s article, “Chocolate
Romance,” Gerard Puglisi mentioned that picking is “family bonding time” (2012). This
received a sustainability score of 5. John Goodman said he would never go back and still wants
to give growing a “good go” since his Malaysian pod borer took over. His desire to keep going
received a sustainability score of 4.
22	
  
Variations
The only considerable difference between growers was that John Goodman was exposed
to more bugs during picking. During participant observation of picking, his youngest son who
was helping out, was stung by a wasp because there are wasps nests in the trees and he had to go
inside for the rest of the day since he had an allergic reaction. This introduces some
environmental issues when staying organic if pests can be a health risk, falling into the
sustainability score of 2. There was also a wasp’s nest in the Puglisi farm, but there were more
bugs overall at John Goodman’s place.
3.1.3 Economic - Growing
Overall economic sustainability of the growing stage scored 3.79. Most of the notes
taken for the economic sustainability of each of the growing estates lied close to the
sustainability score of 5. For example, John Goodman was paid AU$1000 per year to go organic
and use the land when getting started. This fit into the category on the scoring chart of “growers
get enough/plenty economic return for the amount of work that they do.”
Patterns
All growers are paid $700 per ton of cocoa beans which each of them mentioned was
above the world price of $200 per ton. This still, amongst growers, was not the best economic
return (according to the growers), but livable and reasonable. This fact received a sustainability
score of 3.
Variations
John Goodman’s economic sustainability varied the most from all the growers. Due to
Goodman’s start up status as “organic” he was supported financially with AU$1000 a year to go
organic and use the land, in addition to compensation and extensive tractor maintenance when
the Malaysian pod borer caused Goodman to lose his organic status. This enabled him to keep
going organically with out an economic loss. Goodman’s average economic sustainability score
is 3.67.
23	
  
3.1.4 Governance - Growing
Overall sustainability of governance in the growing stage scored 2.60. Most of the notes
taken for the social sustainability of each growing estate were close to having good sustainable
efforts. For example, according to John Goodman, when the original company, Cocoa Australia,
came to Mossman to help cocoa farmers start up, there was an organic consultant that the
company employed as incentive and support for growers to grow cocoa organically, however,
the consultant was only employed at the beginning of the establishment of the industry. This
note received a sustainability score of 3.
Patterns
All of the growers did address a positive connection to the upper management who work
in Melbourne at one point during the interview. John Goodman mentioned that he can voice his
opinion through Gerard that will then get down to Melbourne, Terese Puglisi mentioned that
Daintree Estates is like a “family,” Don Murday mentioned the excellence of a vertically
integrated system, and Darryl Kirk mentioned that overall he enjoys working with the people
down in Melbourne. These results received 4s and 5s.
Variations
Although all the growers were positive about management in Melbourne, a couple of
them did mention frustrations, in addition, with governance and room for improvement. Don
Murday expressed his frustrations with upper management in Melbourne:
“I’m frustrated…people down south don’t communicate to us well enough about what
they’re doing. I have concerns about quality control issues. They seem too focused on
research…trying to reinvent ferments or reinvent roasting and trying to do things
differently with all the research...Whereas I would like to see them focusing on just
making good quality chocolate.”
The above comment received a sustainability score of 2. Darryl Kirk has similar
frustrations with quality control, including marketing the chocolate syrup as “gourmet” when it is
not made with the quality ingredients that gourmet chocolate sauce should be made with.
24	
  
Rather, the chocolate sauce is made with ingredients synonymous with cheap chocolate sauce at
the grocery store, according to Kirk. This comment received a sustainability score of 1.
3.1.5 Growing Culture of Sustainability
Although receiving the lowest overall score of any of the stages of the Australian cocoa
industry, the score for growing sustainability was still high and can lead to a sustainable future
for the industry. The aspects of sustainability in the growing stage that truly stood out were the
strong commitment to cocoa farming, the pure pleasure involved in the cocoa farming, and the
ability to recognize ecological impacts but balance with efficiency. The biggest issue in the
growing stage was the sustainability of governance.
All of the growers had to originally respond to an advertisement about starting up as a
cocoa farmer. This conveyed a genuine interest in growing for the industry. Upon being asked
the question “Would you ever think about stopping cocoa farming?” they all said no. Every
grower was genuinely passionate and knowledgeable about growing cocoa, eager to learn more
to grow cocoa more efficiently in the future. I believe this attitude towards the practice is present
as cocoa farming is not the Australian farmers’ sole income, in addition to being paid decently
for their cocoa. In a traditional growing country like Indonesia, cocoa farming in Sulawesi alone
is “the principal income for more than 500,000 Sulawesi families” (Community Solutions
International 2010). Many of those cocoa farmers are “among the 2 billion people living on $2 a
day” (Fairtrade Foundation 2011, p.2). The commitment and genuine happiness with cocoa
farming was especially evident with John Goodman, due to his excitement and willingness to
keep going even after having to start from scratch on his 2.5 hectares of cocoa after the
Malaysian pod borer wiped all of his trees out and he temporarily lost his organic status. When
asked about fertilizer, the farmers that were not organic were conscious of the amount of
fertilizer used. Although none of the plantations were planted under shade, all of them were
created on land that already existed and would have gone to waste if it was not for cocoa;
therefore, biodiversity was not diminished, as can often be the issue with other countries.
According to Franzen and Mulder, “when prices are low cocoa farmers plant new trees, often by
clearing new forest rather than replanting existing cleared areas” (2007, p.3836).
Governance is the only sustainability aspect of the QBL that can be majorly improved in
the growing stage. I do believe, with projections of moving many of the operations that are
25	
  
currently in Melbourne, up north to Mossman, governance will improve because there will be
less of a geographical divide between the growing and production. That being said, it is a step in
the right direction that Terese Puglisi is the Sales Representative and Gerard Puglisi is the
Grower Director and both are able to easily communicate with the other growers in Mossman.
Therefore, although it can greatly improve, governance is expected to grow more sustainable and
has promise for the future with a good start currently.
3.2 Sustainability of Fermenting and Drying in the Australian Cocoa Industry
The sustainability of the fermenting and drying stages is a broad category, ultimately
including every part of the industry performed after the beans are picked and before they are
shipped to Melbourne. This stage received a score of 3.69.
3.2.1 Ecological – Fermenting and Drying
Overall ecological sustainability of the fermenting and drying stages received a score of
3.50. This score considered the machinery energy output used during these processes (see figure
12), including machinery in sorting the beans after being dried and closing the bags to get ready
for being shipped to Melbourne. For example, the grader machine (picture prohibited), which
was used to separate large and small beans and eliminate any too small beans and debris, was
high powered using electricity, while still using man power to turn the cylinder in the middle and
send the beans down to the cylinder through a chute. One man usually does this two-part job.
This was given a score of 3.
The ferment did not require any machinery and utilized banana leaves (see Figure 11),
and received a sustainability score of 5. Daintree Estates also has plans to utilize solar energy for
the drier to make it far more efficient, using minimal energy and an efficient design.
Figure11 Beans fermenting with banana leaves
26	
  
Figure 12 Cocoa bean drier and fan
3.2.2 Social – Fermenting and Drying
Overall social sustainability of the fermenting and drying stages received a score of 3.57,
in between good sustainable efforts and mostly sustainable. This score considered splitting pods,
getting the pods ready for the fermenting process, transportation of the final dried beans and
work involved in these processes. For example, Darryl Kirk used a sharp machete to split the
pods open by hand. Kirk was very confident, splitting the pods this way week after week, and
content doing it. The process, however, still presented an environmental justice issue, putting
Kirk’s wellbeing on the line if the machete were to slip. Therefore, this process received a 3.
Jan Ward and Vicki Ward, two sisters, work with Darryl, taking beans out of the pods to
get them ready for the ferment. They were very happy about their jobs, thinking of it as a fun
break from the gardening that they usually do (See Figures 13, 14, and 15). Their work with
Darryl received a sustainability score of 5.
27	
  
Figure 13 Bean removal with Vicki and Figure 14 Getting beans ready to ferment
Jan Ward
Figure 15 Removing beans from pods – participant observation
28	
  
3.2.3 Economic – Fermenting and Drying
Overall economic sustainability of the fermenting and drying stages of the Australian
cocoa industry received a score of 3.67. The sustainability assessment included the efficiency of
the processes to produce the most amount of economic return, the cost of the equipment, and the
value of and economic prospects of innovative, original ideas for these processes. For example,
Lance Sparrow has an idea for an efficient bean drier that will also utilize solar energy. This will
save the company money and also be more efficient. Therefore, this aspect received a
sustainability score of 4, fitting into the category on the score chart of “machinery working
toward innovative, unique, and efficient ideas.”
3.2.4 Governance – Fermenting and Drying
Overall sustainability in governance of the broadly defined fermenting and drying stage
received score of 4.00. This included two key aspects. One aspect was the quality control for
the beans that is performed after the beans are fermented and dried. This received a score of 5
because quality of the ferment is actively checked. The second aspect was based off the
interview with Darryl Kirk who is in charge of the fermenting process. Darryl Kirk mentioned
that the dark chocolate “has a fruity punch…I don’t know [what makes it that way] but I’d like to
learn.” Darryl Kirk mentioned that the “fruity punch” may come from the ferment but he does
not know enough to change the way it’s done. Darryl Kirk’s reflection on lack of education of
this process received a sustainability score of 3.
3.2.5 Fermenting and Drying Culture of Sustainability
The tasks performed by hand, the sense of community, and the potential to use renewable
energy in the future stood out as creating the overall culture of sustainability for the broadly
defined fermenting and drying stage.
Splitting the pods is currently done by hand, significantly saving energy since the
possibility to use an automated pod splitter shown in the RIRDC report was bypassed. In
addition, taking all of the beans out of the pods is done by hand, and creates a great sense of
community as observed through participant observation. In comparison, Brazil has a machine
powered pod splitter and trommel to take the beans out (Diczbalis 2010, p.100). Although I do
29	
  
recognize the great increase in efficiency with such machinery, currently, Daintree Estates is
handling as much cocoa as it can while still being successful, and operations by hand for
Daintree Estates specifically is the most sustainable option since there are not enough pods to
make splitting by hand inefficient at this stage in the industry. Splitting and taking beans out by
hand creates a sustainable balance of community and diversifying work, as the two sisters
working mentioned that it is nice to do something different once a week.
Sparrow’s innovative automatic, solar powered bean dryer greatly impressed me. It is an
innovative, efficient, and energy saving way to dry the beans. I believe that this idea is a good
projection of the creativity the Daintree Estates team has as well as the ability to keep
sustainability in mind, which is extremely promising to sustain the industry in Australia and
world wide as other countries can adopt Australia’s innovative ideas to improve sustainability of
the world wide cocoa industry.
3.3 Sustainability of Processing/Manufacturing
The processing/manufacturing stage was the second highest scored stage, with an overall
sustainability score of 3.73. This score considered processes from when the beans left Mossman
to go to Melbourne, to when the chocolate was made into product and packaged.
3.3.1 Ecological – Processing/Manufacturing
Overall, the ecological sustainability of the processing/manufacturing stage received a
sustainability score of 3.25. This considered aspects such as whether or not ingredients
processed with the pure cocoa was local, parts of the pod and plant used to make the product,
environmental impact of processing/manufacturing machinery, and future plans for this stage.
Daintree Estates imports the cocoa butter used to make the final chocolate product.
According to Sparrow, “the technology is not yet in Australia but it could be.” Currently,
without a press to make the cocoa butter, many of the small pods picked are rejected when they
could be used to make cocoa butter. This received a sustainability score of 3 as it currently
wastes a lot of useful natural resources, but there still is a potential for the technology in the
future.
Extensive energy powered machinery is used in the processing and manufacturing of the
cocoa. The energy intensive machinery includes a sieve to eliminate any harmful debris, an
30	
  
electric or gas powered roaster, that will roast the beans at 160 degrees Celsius, an automatic
bean dropper to the cooling tray, a high powered fan that cools the beans, a winnower that
removes the beans’ soft shell, a shaker that ensures a precise amount of air is blown through the
mixture, a grinder to grind the nibs at least twice depending on the recipe, a refiner where three
stainless steel wheels rotate quickly and pass through at least twice, a conch, which requires
extensive energy taking about twelve hours (According to Sparrow, “time depends on size and
efficiency of the unit and the target particle size of the chocolate you want to get down to. The
more you conch, the finer the chocolate becomes.”) to grind the stones, the tempering machine
which lowers the cocoa’s temperature to 28 degrees Celsius first, then quickly raises it to 31
degrees, the injector that injects the final processed cocoa into the chocolate bar molds, conveyor
belt that automatically shakes the molds to eliminate air bubbles, the fridge used to solidify the
chocolate into bars, and a wrapping machine. Melba (the roasters for Daintree Estates) is a gas
driven factory and Corvina (the rest of the processing/manufacturing) is a combination of gas
and electricity. Overall, the machinery used mostly non-renewable energy, and received a
sustainability score of 2. Some of these manufacturing processes were performed by machine
when other chocolate factories have done them by hand (MrChocolateTV 2009). This difference
received a score of 1.
3.3.2 Social – Processing/Manufacturing
Overall, the social sustainability of the processing stage of the emerging Australian cocoa
industry received a score of 4.67. This score was comprised of the health benefits that result
from how the cocoa is processed or what it is processed with and the wellbeing of workers
involved in the processes. Health benefits that were embedded in the chocolate during process
served as the focus for the social sustainability score. This included processing the chocolate
with the world’s first low glycemic index sugar (low GI), originally developed by Dr. Barry
Kitchen, who initiated setting up the technology for the special sugar at the Mossman Sugar Mill.
According nutrition scientist, Joanna McMilan-Price, in an article by Pamela Wilson, “Research
has shown that very high glucose levels after meals, called glucose spikes, are damaging to our
arteries and various blood vessels.” Wilson stated, “Eating low-GI foods means you avoid those
spikes and dramatic falls in blood-glucose so you get a much steadier stream of
energy…therefore reducing risk of heart disease and other chronic diseases.” In addition, low GI
31	
  
can help with weight control since glucose spikes in high GI foods “stimulate hunger,” as well as
store insulin, which make it more difficult to burn fat (Wilson 2011). This one of a kind
ingredient processed into the cocoa, received a sustainability score of 5. In addition, Sparrow
has a vision to use chocolate as a carrier for a range of potentially different drugs. Sparrow said
in an email, “These might include some of the commonly available ones on the market now (i.e.
we can deliver them better) or they might be a functional food extract which may aid in the
maintenance of general health and well being (e.g. high fiber, high antioxident chocolate).”
According to Sparrow, no chocolate company has ever created chocolate drugs. This future plan
to process cocoa with embedded health benefits received a social sustainability score of 4.
The wellbeing of the workers was also considered in the packaging stage once the
chocolate bars are all made. Melba is a family business, run by two Greek cousins who create
their own conditions within the factory. According to Sparrow, “they create their own conditions
within the factory but they are pretty clean and tidy and always have things well organized
according to prevailing regulations governing roasting and coffeee production.” These
conditions received a score of 5. Corvina is a food manufacturing business and must focus on
maintaining preserving and growing business with a very strict set of regulations, according to
Sparrow. This received a score of 3. Daintree Estates partners with a company called Mariott
Industries. According to the company’s website they are, “committed to supporting people who
encounter barriers in finding employment. Our team has particular experience in successfully
finding employment for individuals with an intellectual disability, autism and aspergers”
(Marriott Industries). According to Sparrow, the workers love to do the work because they feel
as though they have a purpose in life. Sparrow says that his dream is to ultimately take a couple
of the workers each year from Mariott Industries and train them all the way through the
production process, teaching them recipe development. This aspect of processing/manufacturing
received a sustainability score of 5.
3.3.3 Economic – Processing/Manufacturing
Overall economic sustainability of the processing/manufacturing stage of the cocoa
industry in Australia received a score of 3.00. This score considered workers’ wages, and the
economic investment in machinery. The machinery roasting the beans is shared with a coffee
roasting company called Melba and all subsequent processes are with a chocolate and
32	
  
confections company called Corvina. According to Sparrow, Melba already wanted to learn how
to roast cocoa so they can use the cocoa to make drinking chocolate eventually to sell in their
café. By using Melba, Daintree Estates benefits economically since the company takes their
chocolate to sell in their shops. Melba charges Daintree Estates a flat rate of $5 per kilo of cocoa
beans and converts the money they earn from the chocolate into equity. If Melba does well
selling Australian origin drinking chocolate, Daintree Estates will help take their business to
Mossman. This economic relationship received a score of 4.
The economic aspect of providing an opportunity for disabled people to work and receive
an income at minimum wage (high in Australia at $15.96 per hour (Australian Government
2013)), received a score of 4.
Importing cocoa butter received a score of 1.
3.3.4 Governance – Processing/Manufacturing
Overall sustainability of governance of the processing/manufacturing stage of the cocoa
industry in Australia received a score of 4.00. This score considered Daintree Estates as a large
company engaging with community, and the relationship of Daintree Estates with the companies
that help with processing and manufacturing.
According to Sparrow, “It is always our intention to try to push back into the community
we are involved in…ultimately, down the track we want to do more with them,” (referring to
Mariott Industries.) This received a score of 4.
The mutual agreement between the coffee company, Melba, and Daintree Estates for
roasting and then selling the final product shows a connection of upper managements
communicating well with each other to achieve a greater ends received a score of 4.
3.3.5 Processing/Manufacturing Culture of Sustainability
Daintree Estates’ main notable aspects in processing/manufacturing are the agreement
that Daintree Estates has with Melba; they will roast if they can sell and promote final product,
and the relationship with Mariott Industries. Other large cocoa processing facilities, such as
Hershey’s, do not show the same social values as Daintree Estates has uniquely demonstrated.
For example, workers at Hershey’s chocolate factory complained of being “captive and
33	
  
underpaid” (Ryan 2011, p.6). Therefore, Daintree Estates has begun an excellent culture of
sustainability for the cocoa industry in Australia in the processing/manufacturing stages.
3.4 Sustainability of Marketing in the Australian Cocoa Industry
Overall sustainability of marketing scored 3.78, the highest scored stage of the Australian
cocoa industry overall. Tastings, retailers, pamphlets, posters, and Internet sites and articles for
publicity were considered when assessing the sustainability of marketing.
3.4.1 Ecological - Marketing
Overall ecological sustainability of marketing in the emerging Australian cocoa industry
received a score of 3.50, considering referencing to the environment and materials used. The
majority of the materials assessed used phrases such as “eco-friendly,” “environmentally sound,”
“sustainable,” “environmental responsibility,” “from the naturally exotic Daintree rainforest,”
and referred to using “natural rainfall” to their advantage. These words and phrases present in
much of the marketing received a sustainability score of 4 since it brings attention to the
companies awareness of the natural environment and use of its resources.
3.4.2 Social – Marketing
Overall social sustainability of marketing in the emerging Australian cocoa industry
received a score of 5.00, considering aspects such as reactions people had to marketing
strategies, and the future for marketing Daintree Estates’ work with social justice. One of the
marketing strategies includes having a monthly tasting booth set up at the Mossman Gorge, a
popular recreation spot. After observation, it was confirmed that people greatly enjoy learning
about Daintree Estates, their mission, and eating local chocolate. This was effective in
prompting people to purchase Daintree Estates chocolate, smiling and sharing with family. This
marketing strategy received a score of 5. In addition, Sparrow has a vision to market the
“Journey around the Pacific” within this calendar year.
Promoting social connections – “Journey around the Pacific”
According to Sparrow, a traditional cocoa growing region in the Pacific like Samoa only
pays about $100-120 per ton for beans (once they are grown, fermented, dried and bagged).
34	
  
Samoa has never made the step forward, from solely being a bean producer. Sparrow has a plan
for Daintree Estates to make origin chocolate from countries around the pacific like Samoa,
taking their beans at a premium price so they will get more money and be empowered to invest
more in their plantations. Daintree Estates will educate growers about sustainable growing
practices to help them see the missing link between the environment and growing. Eventually,
Sparrow said, he wants to “take them all the way up the chain,” from bean to bar. Daintree
Estates will market the “romantic history” of how the whole area of the Pacific islands was
discovered to tell a story of chocolate while improving livelihoods of cocoa farmers. Emotional
appeal and promotion of social justice activism for this future plan, gave this marketing strategy
a score of 4.
3.4.3 Economic - Marketing
Overall, the economic sustainability of the marketing stage of the emerging Australian
cocoa industry received a score of 3.50. This score consisted of an assessment of economic
benefits of marketing unique aspects of production and the economic return generated by
marketing techniques. Daintree Estates’ proposal to make chocolate as a drug and market it as
such has potential to increase sales, therefore receiving a score of 3, as this is a future projection
for marketing with no indication as to the amount of economic return based on popularity that
will come from such a product. The next aspect considered was the benefits of promoting
Daintree Estates through a television program. Daintree Estates was featured on Landline,
ABC’s program on rural issues. Sparrow said that after the program aired, within 12 hours,
Daintree Estates was sold out and had to turn people’s orders away. Sparrow recognizes that
media promotions like television and selling over the internet are very profitable but can generate
too much economic return, where supply cannot keep up with demand. This received a score of
4.
3.4.4 Governance - Marketing
Overall, the sustainability of governance in the marketing stage of the emerging
Australian cocoa industry received a score of 3.13. This score took into account the target
audience of Daintree Estates as a whole, retailer stores that sell Daintree Estates chocolate, as
well as the greater marketing forces such as television and the Internet. Coffee Works served as
35	
  
an example as a greater marketing force as a retailer. Coffee Works has the opportunity for an
extensive chocolate tasting, however, the Daintree Estates chocolate only appeared in one small
corner in the Chocolate portion of the shop with a sign that read, “Queensland Origin
Chocolate,” and it was not available for tastings. This retailer portrayal of Daintree Estates
chocolate received a score of 2. The power of being featured on the television program,
Landline, was very successful, but also has caused them to sell out and turn customers away in
the past. This received a score of 3. Selling over the net has been a great way for them to
publicize business as well with social media sites, and received a score of 5. According to
Sparrow Daintree Estates, however, does struggle to know exactly who their audience/customer
base is, since the customers are all over the board, from single people who love chocolate, to
families with children, receiving score of 2. In addition, Sparrow says Daintree Estates wants to
promote “embracing new batches,” so customers will be expecting difference and variability in
their chocolate. This is a tool to market so people will think of difference as a good perk to
Daintree Estates chocolate, changing the overall mindset of customers. This received a score of 3
as it may not to appeal to all chocolate consumers.
3.4.5 Marketing Culture of Sustainability
Even though marketing was the highest ranked stage of the Australian cocoa industry,
Sparrow said himself, marketing “could be better,” but it is hard to assess since there is a fine
line between how good Daintree Estates’ marketing can be, and how they will make sure demand
does not exceed supply. Daintree Estates has shown some good marketing peaks such as being
featured on Landline when they sold out within 12 hours, however, that cannot always happen.
Therefore, I believe marketing right now is very sustainable and strategically not as good as it
could be so the company does not get a bad reputation for always being sold out. I think that it is
intriguing that Daintree Estates is Australia’s little secret right now, however, this can’t always
be the case. To be truly sustainable, marketing needs to increase, but the company needs to find
a way to increase growing and production as well.
The future marketing of the “Journey around the Pacific” is a huge step in the right
direction to sustainability. This will truly balance marketing and supply with the bonus of social
justice. Daintree Estates will have more supply because they are acquiring beans from
elsewhere, increase demand, with intrigue of a “romantic journey” around the pacific in a
36	
  
chocolate bar, and a greater emotional appeal and social responsibility, empowering smallholder
farmers in third world countries. According to the Fairtrade Foundation, currently traditional
cocoa growing countries lack major technical support. For instance, “governments in producing
countries levy high export taxes on cocoa beans to boost national economies at the expense of
farmer incomes. But too little has been re-invested in supporting farmers by providing technical
training to improve yields, develop co-operatives, build business capacity or improve market
access” (2010, p.9). This is what Daintree Estates hopes to change around the Pacific, and may
be the ultimate marketing strategy that gives the company even higher marks in sustainability in
the future.
3.6 Case Study Comparison: Sustainability Culture of the Cocoa Industry in Ghana
The culture of sustainability of the cocoa industry in Ghana was chosen due to Augustine
Ntiamoah’s and George Afrane’s study which closely resembled my assessment, entitled,
“Environmental impacts of cocoa production and processing in Ghana: life cycle assessment
approach.” With some missing categories of what was assessed in the study of the Australian
industry, Ntiamoah and Afrane’s article was supplemented with Doussou Traoré’s report with
the Food and Agriculture Organization of the United Nations. Sustainability scores were applied
based on my original scoring system used for the Australian cocoa industry assessment. The
purpose of this assessment is to compare a traditional growing country’s culture of sustainability
to Australia’s emerging cocoa industry’s culture of sustainability. Discussion and comparison is
included in each subsection of 3.6.
3.6.1 Ecological – Ghana
Overall ecological sustainability of Ghana’s cocoa industry received a sustainability score
of 2.56, considering fertilizer pollution, machinery, biodiversity, and resource use. Ntiamoah
and Afrane mention “the analysis revealed that production and use of fertilizers and pesticides
were a major cause of the environmental burdents in the cocoa production,” mentioning
eutrophication and eco toxicity. This received a score of 1 (2008, p.1737). There was also
biodiversity loss, major production and consumption of fossil fuels in boilers and roasters due to
the energy intensive nature, large amounts of solid waste from pod husks, and emissions of
halogens and CFCs during production of pesticides. Each of these ecological aspects received a
score of 1. Production relying on natural weather patterns received a score of 3. Finally, no
37	
  
agricultural machinery, cocoa shells processed and packed for sale as animal feed, and the
process of sun drying the beans, each received a score of 5.
Ghana scored significantly lower than Australia in its cocoa industry’s ecological
sustainability due to its prominent use of toxic fertilizers, land clearing, waste, and natural
weather patterns. Every one of the cocoa farmers in Australia interviewed said that there was no
need to use a lot of fertilizer, going “eco” with the fertilizer, or organic. In addition, new land is
cleared in Ghana to create land for cocoa, whereas Australian land was already clear after sugar
cane lost economic value (Mcinerey 2010), or in Darryl’s case, he bought empty land and was
putting it to good use. The divide between Ghana and Australia in terms of fertilizer toxicity and
biodiversity loss was the largest difference between the industries, Australia coming out on top.
Although, Ghana did have more prominent less sustainable aspects, they did exceed Australia in
terms of sun drying beans and using no agricultural equipment whatsoever. Australia will have a
sun drying system in place in the future but uses tractors irrigation misters. Australia’s system of
using agricultural equipment is efficient, and Ghana’s system may not be quite as efficient,
requiring more labor than necessary. The amount of efficiency would need to be researched
further in order to fully determine whether it would be feasible to eliminate all agricultural
equipment while still remaining sustainable.
3.6.2 Social - Ghana
Overall social sustainability of the cocoa industry in Ghana received a sustainability score
of 1.00. This score was based off of two criteria: Husks used as mulch presented a significant
source of disease, receiving a score of 1, and the cocoa industry lacked competitiveness and
people’s incomes were deteriorating, causing excessive labor for very little pay and
subsequently, poor livelihoods, and received a score of 1.
The Fairtrade Foundations mentions, “as a result of the lack of government investment in
infrastructure, villages in cocoa growing areas typically have poor education and healthcare
services and lack electricity and decent sanitation with water only available from communal
wells” (2011, p.9). Because Australia is developed with a stable government and economy, the
cocoa industry has the ability to advance with greater education in scientific fields required to
have proper farming practices, therefore reducing health risks like what was present in Ghana.
For example, both Lance Sparrow, and Dr. Barry Kitchen involved in Daintree Estates have
38	
  
extensive biomedical/biotechnological knowledge. This access to better education and stable
government means that “Daintree Cocoa Pty. Ltd. is obliged to abide by Australian law, which
covers workplace relations, worker’s rights and compulsory workers’ insurance, making the cost
of labour relatively high in Australia” (Davies pers. comm. 2013).
3.6.3 Economic – Ghana
Overall economic sustainability of the Ghana cocoa industry received a score of 2.50.
This considered two criteria: commercialization of the pulp and pod husks, and received a score
of 4, and low and unstable farm-gate prices involving a vicious circle of lower investments,
lower productivity and ultimately, deteriorating incomes. This received a score of 1.
Commercializing parts of the pods will increase proceeds by expanding the market to
more than just chocolate products. This is one thing that Australia is also starting to do. For
example, Daintree Estates uses the shells of beans to make soap. The difference is that with
Daintree Estates’ vertical integration, more of the profit will go back to the growers and workers
in the company, which is not the case in a traditional cocoa growing country like Ghana.
Currently growers receive about 3.5 percent of the final value of the chocolate bar, therefore,
other commercial products may follow suit. Daintree Estates is a different kind of company that
has ultimate dedication involved since traditionally, growing in Australia is not even considered
to be an option, therefore, they do not even come close to a “vicious circle” of unstable prices,
lower investments, low productivity, and deteriorating incomes. Even if this did happen, the
farmers would not be as devastated by the results, since they are not solely dependent on cocoa
as their primary income. Therefore, a good economic structure must be sustained to sustain the
Australian cocoa industry as a whole.
3.6.4 Governance – Ghana
Overall sustainability of governance of the cocoa industry in Ghana received a score of
2.00. This was based on two criteria: the Cocoa Processing Company’s decision to initiate
animal feed, which received a score of 3, and the volatility of the commodity market, which
received a score of 1.
The Cocoa Processing Company made a good decision to use resources wisely to the
advantage of the company. The issue here is that there is no information as to whether or not the
39	
  
growers are involved in this decision and whether or not they receive benefits from this decision.
In Australia, the growers were involved in this decision making process as Terese Puglisi is the
Sales Representative and part of a grower family. She was very knowledgeable about the
expansion of using more of the plant for more products.
3.6.5 Culture of Sustainability – Cocoa industry in Ghana
Ghana’s overall sustainability score was 2.01, which consisted of many very low scores.
With the industry dependent on an unstable economy and serving as the main cash crop for the
country, growers do not directly benefit, and desperate measures are often taken that create
ecological unsustainability in order to increase yields.
4.0 General Discussion
Overall, the emerging Australian cocoa industry has good sustainable efforts and a slight
mark away from being mostly sustainable. The most unique aspect of the Australian cocoa
industry that benefits all four elements of the QBL is its vertically integrated structure. This
leads to a strong connection between all stakeholders and stages in the industry, and gives
governance a good score for sustainability. The growers and managers have a strong education
background in agriculture, general science, and technology, which gives ecological sustainability
high marks. Due to the industry’s connection with local companies (Corvina, Melba, and
Marriott Industries) and high cost of labor in the country, the economic element also has very
good sustainable aspects, which leads to strong social sustainability as the growers receive
enough of an economic return to maintain good livelihoods. In addition, the current overall
culture of the industry is very pleasurable for the growers with a lot of perks in terms of
pioneering the industry in Australia, creating a community, and learning something new about
farming. Therefore, social sustainability received the highest marks of all the four QBL
elements.
Although overall sustainable, the Australian cocoa industry can improve on governance
in the growing stage and overall scale of the industry. The majority (three of the four) of the
growers felt that upper management did not address their concerns about quality control. One of
the growers mentioned they have too much of a focus on research. Communication between
Melbourne and Mossman stakeholders ultimately needs to improve in order to keep growers
40	
  
involved and enjoying the job. The other major issue is that often, the industry cannot keep up
with demand. The strong customer base is sustainable, however, Daintree Estates needs to
increase the number of cocoa growers involved. The company is on the right track for this,
encouraging farmers who may be interested to contact Daintree Estates on the website, and
currently training two more growers, according to Sparrow. In addition the future plan to
integrate beans from other countries will increase output.
As a representative of the Australian cocoa industry, Daintree Estates does significantly
surpass the global cocoa industry based on a case study of Ghana. See figure 16.
Figure 16. Australia and Ghana cocoa industries – comparison of sustainability scores
According to the Fairtrade Foundation
With around 70 per cent of the world’s cocoa being grown in West Africa, particularly
Côte d’Ivoire and Ghana, cocoa growers are typically subsistence farmers on a very low
income. They grow staple foods such as yam, plantains and cassava and perhaps sell
small amounts of fruit or vegetables to the local market. Cocoa is grown alongside these
41	
  
food crops and provides the main cash income that farmers rely on to pay school fees,
medical bills and purchase other necessities for the average household of six people.
With one main harvest a year, farmers have to budget carefully throughout the rest of the
year and often need to take out expensive loans. It is impossible to save money and by the
time the next harvest begins farmers are desperate to sell their beans to get cash (2011,
p. 9).
It is difficult to conclude that Ghana should learn from Australia and subsequently
improve their industry due to the fact that currently has inadequate infrastructure, poor
education, lack of technical support, and poor market information (Fairtrade Foundation 2011,
p9). These poor aspects are so ingrained in the political, social, and economic systems in Ghana
that it is hard to turn it around quickly. Therefore, Daintree Estates can act as a leader in the
industry, and with the idea to launch the “Journey around the Pacific,” is currently on the right
track. This program, once initiated, will stand out as one of the most sustainable parts of the
industry because they are working with farmers on a smaller scale, individually visiting different
countries and teaching farming practices and how to make chocolate to vertically integrate more
cocoa industries around the world while still producing chocolate in Australia a local level.
…be more economically literate. All of life is diversity. That means unique human
individuals as well. As individuals we are unique, as groups, as cultures, as races, and
again, we need to have adaptation to that diversity, rather than homogeneous one
standard consumer monoculture image that is affecting people worldwide. Therefore, for
human and ecological reasons, we must adapt economic activities to diversity. That
means to respect realities of different places and cultures.
– Helena Norberg Hodge
5.0 Conclusion
The purpose of this study was to assess four elements of sustainability, known as the
Quadruple Bottom Line (ecological, social, economic, and governance), in the emerging cocoa
industry in Australia to ultimately assess the sustainability of the industry. My original
hypothesis was that the Australian cocoa industry would be very sustainable and much more so
than other cocoa industries around the world. This was influenced by my initial browse of
42	
  
Daintree Esates’ website and my knowledge of Australia as a developed country with many
natural protected areas (World Heritage sites) and an extensive conservation efforts throughout
the country. My hypothesis was proven correct by an assessment of the Australian cocoa
industry with my developed scoring system, as well as an assessment of a case study cocoa
industry in Ghana with the same scoring system.
5.1 Key Points
In each stage and each element of the QBL, Australia scored between “good sustainable
efforts” and “very sustainable.” The social sustainability rated the highest of all QBL elements
with a score of 4.37, above “mostly sustainable,” and the marketing stage received the highest
sustainability score of all the stages with a score of 3.78, very close to being “mostly
sustainable.”
The following aspects exemplify the high sustainability score of the social element of the
Australian cocoa industry:
 Vertical integration
 Strong community between growers and workers in Mossman
 Strong connection between industry and local communities (Melbourne and Mossman
communities)
 Growers overall satisfaction with involvement in industry
 Customer attraction and satisfaction to the industry
The following aspects exemplify the high sustainability score of the broadly defined
Marketing stage in the industry:
 Power of the internet and television
 Future to market “Journey around the Pacific”
 Recognition of natural environment and Daintree Estates’ environmentally responsible values
In Ghana, the highest scores of the elements of the QBL in the cocoa industry were still
much lower than the lowest scores of the Australian cocoa industry QBL elements. The highest
score in the ecological element of the cocoa industry in Ghana was 2.56, which did not even
reach “good sustainable efforts.” Therefore, cocoa industries in traditional cocoa growing
countries like Ghana can learn from Australia’s industry. Australia will ultimately take the
The Daintree’s Bitter Sweet Treat: How Sustainable is Australian Origin Chocolate
The Daintree’s Bitter Sweet Treat: How Sustainable is Australian Origin Chocolate
The Daintree’s Bitter Sweet Treat: How Sustainable is Australian Origin Chocolate
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The Daintree’s Bitter Sweet Treat: How Sustainable is Australian Origin Chocolate

  • 1. i   The Daintree’s Bitter Sweet Treat: How Sustainable is Australian Origin Chocolate? Rudee, Talia Academic Director: Brennan, Peter Project Advisor: Cuming, Peter Whitman College Environmental Sociology Mossman, Queensland, Australia Submitted in partial fulfilment of the requirements for Australia: Sustainability and Environmental Action, SIT Study Abroad, Spring 2013
  • 2. ii   ISP Ethics Review This ISP paper by ____________________________________________ (student) has been reviewed by _Peter Brennan______________________________ (Academic Director) and does/does not* conform to the ethical standards of the local community and the ethical and academic standards outlined in the SIT student and AD handbooks. *This paper does not conform to standards for the following reasons: Academic Director: Peter Brennan Signature: Program: Australia: Sustainability and Environmental Action Date:  May  9th  2013  
  • 3. iii   Abstract This study determined the sustainability of the fledgling cocoa industry in Australia based on the Quadruple Bottom Line (QBL) of sustainability consisting of ecological, social, economical, and governance elements. Each element was considered within each stage of production (growing, fermenting and drying, processing/manufacturing, and marketing) and the level of sustainability was assessed by a rating system from 1 to 5 (1 poorly sustainable, 5 very sustainable). Currently, most of the cocoa producing countries have very poor infrastructures and are classified as third world, adopting many unsustainable practices. Cadbury Schwepps, a major multinational chocolate company, was concerned about the sustainability of the global cocoa market with demand greatly increasing and proposed a study to research the feasibility of growing cocoa in Northern Australia. The most successful trial site was in Mossman, Queensland, where Daintree Estates has marked its territory, the world’s first commercial chocolate company to make single origin Australian chocolate. Daintree Estates served as the unit of analysis for the entire industry. I interviewed six people in conjunction with three sessions of participant and indirect observation, and content analysis of marketing materials. The marketing stage was the most sustainable stage of production with overwhelming success of Internet and television publicity and a future idea to market a “Journey around the Pacific.” The social element of the QBL was the most sustainable element with ultimate satisfaction with the cocoa industry among stakeholders and good community outreach. My research revealed, overall that the Australian cocoa industry does in fact have a sustainable edge on the global cocoa industry and, in the future, will serve as a leader in education and empowerment for smallholder farmers in many traditional growing countries. Keywords: Sustainability, cocoa industry, Quadruple Bottom Line Codes: Environmental Studies – 537, Agriculture – 602, Food Science and Technology – 607,
  • 4. iv   Table of Contents 1.0 Introduction..................................................................................................... 1 1.1 History of Cocoa .................................................................................. 1 1.2 The Concept of Sustainability and Cocoa............................................. 3 1.2.1 Cocoa’s Social Sustainability.............................................. 4 1.2.2 Cocoa’s Ecological Sustainability....................................... 4 1.2.3 Cocoa’s Economic Sustainability......................................... 5 1.2.4 Cocoa’s Sustainability in Governance ................................. 5 1.3 History of Australian Cocoa Industry .....................................................7 1.4 The Role of Daintree Estates....................................................................8 1.5 Purpose of Study.......................................................................................9 2.0 Methodology ...................................................................................................... 10 2.1 Choosing Daintree Estates ...................................................................... 10 2.2 Choosing Locations of Study and Duration of Stays ............................... 10 2.3 Finding Interview Subjects........................................................................ 10 2.4 Designing and Conducting Interview Questions....................................... 12 2.5 Using Participant and Indirect Observation............................................. 13 2.6 Conducting Content Analysis..................................................................... 14 2.7 Organization of Data and Paper ............................................................... 15 2.8 Challenges and Limitations ....................................................................... 16 2.9 The Research Participants.......................................................................... 17 3.0 Results and Discussion........................................................................................... 17 3.1 The Sustainability of the Growing Stage...................................................... 18 3.1.1 Ecological – Growing….............................................................. 18 3.1.2 Social – Growing…..................................................................... 21 3.1.3 Economic – Growing….................................................................22 3.1.4 Governance – Growing…............................................................. 23 3.1.5 Growing Culture of Sustainability…............................................ 24 3.2 Sustainability of Fermenting and Drying in the Australian…........................ 25 3.2.1 Ecological – Fermenting and Drying…........................................ 25 3.2.2 Social – Fermenting and Drying…............................................... 26 3.2.3 Economic – Fermenting and Drying……………........................... 28 3.2.4 Governance – Fermenting and Drying…..................................... 28 3.2.5 Fermenting and Drying Culture of Sustainability........................ 28 3.3. Sustainability of Processing/Manufacturing in the Australian Cocoa Industry ...................................................................................................... 29 3.3.1 Ecological – Processing/Manufacturing…................................. 29 3.3.2 Social – Processin/Manufacturing….......................................... 30 3.3.2 Economic – Processing/Manufacturing…................................... 31 3.3.4 Governance – Processing/Manufacturing…................................ 32 3.3.5 Processing/Manufacturing Culture of Sustainability…................ 32 3.4 Sustainability of Marketing in the Australian Cocoa Industry....................... 33 3.4.1 Ecological – Marketing…............................................................. 33
  • 5. v   3.4.2 Social – Marketing…................................................................... 33 3.4.3 Economic – Marketing …………………………............................ 34 3.4.4 Governance – Marketing….......................................................... 34 3.4.5 Marketing Culture of Sustainability …........................................ 35 3.5 Case Study Comparison: Sustainability Culture of the Cocoa Industry in Ghana…………..................................................................................................... 36 3.5.1 Ecological – Ghana…................................................................. 36 3.5.2 Social – Ghana…......................................................................... 37 3.5.3 Economic – Ghana…................................................................... 38 3.5.4 Governance – Ghana…............................................................... 39 3.5.5 Culture of Sustainability – Cocoa Industry in Ghana….............. 39 4.0 General Discussion ................................................................................................... 39 5.0 Conclusion ................................................................................................................ 41 5.1 Key Points ….................................................................................................. 42 5.2 Recommendations…………………………………………………........................ 43 5.3 Further Research…......................................................................................... 44 6.0 References ..................................................................................................... 45 7.0 Appendices ..................................................................................................... 47  
  • 6. vi   Acknowledgements I would first like to thank my family, Gail, Don and Alex Rudee. Throughout all of this often very difficult work, you all believe in me more than I could ever believe in myself. It is because of you all I keep going strong. Thank you Peter Cuming, my excellent adviser. I appreciate your enthusiasm, ability to understand how I think, extensive help, and your patience. To Louise and Bennett Walker, and the rest of the family -- Thank you for taking time out of your days to drive me to my research sites and show me the magnificent area. I felt extremely welcome in your home and I will remember my experiences staying with you for the rest of my life. To Sylvia Gooch -- Thank you for taking me into your home in Melbourne and helping me get all of the information I needed. To the Daintree Estates crew -- It is a wonderful company and I enjoyed the time spent with each and every one of you. It didn’t even feel like I was researching but meeting new friends. Finally, I would like to thank Jesse Abrams and Helen Kim – Thank you for being such a supportive mentor and adviser while I am so far away. Jesse, your classes inspired me to be on this program. And Helen, you have been so extremely supportive and helpful while I have been away.
  • 7. 1   1.0 Introduction Cocoa growing is a new industry in Australia. Many traditional cocoa growing countries around the world, such as the Côte D’Ivoire, Ghana, Brazil and Indonesia, have unsustainable aspects in their cocoa industries due to negative effects on the social, ecological, economical, and governance aspects in the industry. For example, cheap labor is often the foundation of the cocoa industry, which results in cocoa farmers’ poor livelihoods (Diczbalis 2010, p.1). Ecologically, full-sun cocoa production and mono-crop horticulture both contribute to degradation of the natural environment and biodiversity (Franzen & Mulder 2007, p.3838). Both have decreased crop diversity and therefore, decreased economic security of smallholder farmers (Franzen & Mulder 2007, p. 3840). Economically, cocoa growers only receive about 6 percent of the price paid by consumers in rich countries (Fairtrade Foundation 2011, p.2). In terms of governance, only ten companies dominate the world cocoa market, receiving about 70 percent of the money of the final value of a chocolate bar, while, for example, growers in Ghana, “many of whom have never tasted chocolate…are likely to receive just 3.5 to 6.4 percent of the final value of a chocolate bar” (Fairtrade Foundation 2011, p.6). The Australian cocoa industry offers a unique model for the cocoa industry worldwide based on its potential to be carried out sustainably by vertically integrating growing and processing without dependence on large corporations (Diczbalis 2010, p.xxii). Daintree Cocoa Pty. Ltd. (Daintree Estates) is the world’s first company to commercially produce Australian chocolate made from locally grown cocoa (Davies 2013 pers. comm., 13 March) and therefore, will serve as the basis for this study to examine the sustainability of the fledgling cocoa industry in Australia. 1.1 History of Cocoa Cocoa must grow in tropical areas within 15° of the equator, which in most cases, includes developing countries (Diczbalis et al. 2010, p. 1). The cocoa plant (Theobroma cacao) is native to South America, traditionally serving as a ritual beverage for the ancient Mayans during Marriage ceremonies (World Cocoa Foundation undated). In 1528, the Spanish Conquistador, Don Hernán Cortés, brought cocoa beans back to Spain (Kraft Foods Australia Pty Ltd. 2013). For about 100 years after the Spaniards were introduced to chocolatl, “the coveted drink of New World inhabitants” (World Cocoa Foundation undated), they kept the special treat a secret. Eventually, after one century, Spain lost their European
  • 8. 2   cocoa monopoly and the bean was introduced to the rest of Europe (World Cocoa Foundation, undated). By the 1600s, the chocolatl was very popular in France as a delicious healthful food that was available to the wealthy (World Cocoa Foundation, undated). By the 18th century, every European country jumped on the cocoa bandwagon (World Cocoa Foundation, undated). Shortly after, the invention of the steam engine revolutionized cocoa, making it easy and more efficient to grind the beans, leading to a reduction of production costs and affordable chocolate (World Cocoa Foundation, undated). Cocoa production took off in the 20th century and today, is one of the world’s most traded food commodities (Diczbalis et al. 2010, p. 1). World cocoa use has increased steadily at about 3.5% per annum since 1920 with the 1970s high price boom ultimately stimulating industry expansion and oversupply in the 1980s (Diczbalis et al. 2010, p. 1). As shown in Figure 1, even in the new millennium the supply and demand for cocoa has steadily increased, while currently there is a cocoa deficit. Figure 1 Supply, production, surplus, and deficit of the global cocoa market
  • 9. 3   Today, the world consumes about 3 million tons of cocoa annually (World Cocoa Foundation, undated). Humans love to consume cocoa in the form of baked goods or candy, whether it be chocolate cake, M&Ms, or a chocolate chip cookie, chocolate is in so many of the world’s favorite treats. With this large consumption rate, the cocoa industry has evolved to include access to cheap and plentiful labor (Diczbalis et al. 2010). 70% of the world cocoa supply is from West Africa and is mostly produced by smallholder farmers (Diczbalis et al. 2010, p. 1). These farmers are typically small, family or village run operations that utilize low wages (Diczbalis et al. 2010, p.1-4). 1.2 The Concept of Sustainability and Cocoa According to environmental educator Ted Trainer, sustainability must involve “small local economies in which people participate collectively to run their economies to meet needs using local resources, and in which the goal is a high quality of life and not monetary wealth” (2010). Therefore sustainability must involve a balanced society with social, ecological, and economic aspects all working together above a foundation of governance. This ultimately achieves what is known as the “Quadruple Bottom Line” (QBL). According to Richard J. Lumsden, “The Quadruple Bottom Line adds the dimension of culture to the other three dimensions [(social, ecological, and economic)]…This concept encapsulates all aspects of the culture of an organization e.g. ethics, governance, etc” (2003). A sustainable cocoa industry must encapsulate the QBL concept through the following aspects as written by H-Y Shapiro and E.M. Rosengquist:  …cocoa grown under a diverse shade canopy in a manner that sustains as much biological diversity as is consistent with economically viable yields of cocoa and other products for farmers  …constructive partnerships that are developed to involve all stakeholders with special emphasis on small-scale farmers  …effective policy frameworks to support these partnerships and address the particular needs of smallholder farmers for generations to come  encourag[ing] future cocoa production that rehabilitates agricultural lands and forms
  • 10. 4   part of a strategy to preserve remnant forests and develop habitat corridors  maximiz[ing] the judicious use of biological control techniques of integrated management of pests, disease, and other low-input management systems (2004, p.456). 1.2.1 Cocoa’s Social Sustainability Cocoa often determines farmers’ livelihoods in the third world traditional cocoa growing countries. According to Talia Alongi, one of the world’s largest cocoa producers, the Côte D’Ivoire exports about 1.3 million tons of cocoa beans, which consists of 35% of the cocoa consumed worldwide. The Côte D’Ivoire and most other cocoa growing countries are developing countries with unstable economies. According to Alongi, the Côte D’Ivoire’s economy “relies on cocoa export taxes, which are negatively affected by a fluctuating and unstable world price” (2010, p.66). Therefore, the country must keep its cocoa exports high in any way possible to keep government revenue high. The average size of a cocoa farm is 2.8 hectares in the Côte D’Ivoire and therefore, requires family farming with such a small size. Of about 200,000 children who work on those farms only 5,120 of those children are legally employed full-time and 64 percent of the overall total are under the age of 14. The issue with this child labor is that children working on the farm generally do not have access to education and work under very poor conditions for very little or no pay. Poor conditions consist of putting children in danger, such as using machetes to cut crop and applying chemicals/pesticides without health protection (2011, p.62-67). These are unsustainable social practices, which occur in many of the cocoa growing countries. 1.2.2 Cocoa’s Ecological Sustainability Different methods of growing cocoa exist, and determine much of the ecological impact the cocoa industry makes in its initial stages. According to Margaret Franzen and Monique Borgerhoff Mulder, there are four different strategies used in growing cocoa. The “rustic cacao” method thins forests with the cocoa planted beneath the remaining canopy of the native trees. The cabruca thins native trees “to approximately 10% of their native abundance” (2007, p.3837). This is generally the method used in Brazil. “Planted Shade” has “greater intercropping of cocoa trees with fruit trees, commercial timber, or fast-growing shade trees” (2007, p.3837). Finally,
  • 11. 5   there is full-sun cocoa growing, which is increasingly growing in popularity in the global cocoa industry. With this, there are no shade trees around the cocoa plantation (2007, p.3837). According to Yann Clough, Heiko Faust, and Teja Tscharntke, there is a biodiversity crisis in the tropics and with cocoa’s large land use based on world demands for the product, the industry must think about how to be more sustainable. Cocoa and coffee are the most common agro forestry crops taking over about 17.7 million hectares in the tropics. Recent reviews show that biodiversity in these agro forests do, however, have the potential to make a slight comeback and contribute to conservation and restoration in the tropics (2009, p. 197). Shaded cocoa is more species rich, however, the industry has shifted to full-sun methods in many cocoa-growing regions (Franzen & Mulder 2007, p. 3837). For example, in Sulawesi, Indonesia, the boom in cacao worldwide has caused the industry to encroach on biodiversity hotspots and move toward “accelerated shade removal.” This has reduced the richness of bird species (Clough & Faust & Tscharntke 2009, p. 197). Farmers moved towards desperate measures like shade removal since in places like Sulawesi, cocoa plays a very important role in their income (Franzen & Mulder 2007, p. 3835-3849). This also leads to other measures such as fertilizer use. According to Ntiamoah & Afrane, “ cocoa production makes the largest contribution to the environmental impacts of eutrophication, ozone layer depletion, freshwater aquatic eco-toxicity, human toxicity, and terrestrial eco-toxicity, with average contributions greater than 96%” worldwide (2008, p. 1737). 1.2.3 Cocoa’s Economic Sustainability In West Africa, a wealthy cocoa farmer with an average family of six or seven people receives only US$300 to $500 per capita per year, about US$2 per capita per day. Most of the cocoa growing countries have a low Gross Domestic Product and poor infrastructure and communications, perpetuating the poor economies (ICCO 2007, p.3). This type of economic return is not sustainable and dominated by the unsustainable governance of the world cocoa industry. 1.2.4 Cocoa’s Sustainability in Governance Only a handful of multinational corporations dominate the global cocoa industry. These include, Archer Daniels Midland, Cargill Inc, Barry Callebaut, Nestle, Cadbury Schwepps, Mars
  • 12. 6   Inc, Philip Morris, and Hershey Foods Corp (Kaplinsky 2004, p.22). These companies have effectively integrated themselves into the global cocoa market where they now have “transformed power relations in commodity markets to the advantage of buyers rather than producers…A lack of competition along the cocoa supply chain means that farmers capture as little as 0.5 percent of the retail price of cocoa” (Traoré 2009, p.27) (See Figure 2). Farmers need to have access to education in order to increase their own credit, develop better infrastructure, develop better marketing skills and gain technical knowledge that will ensure independence and a sustainable cocoa industry (Traoré 2009, p.27.) Currently, the industry is destroying smallholder farmers’ livelihoods because they are not educated and must depend on large corporations that are exploiting them. Figure 2 West African cocoa supply chain Source: Fairtrade Foundation 2011, p.7
  • 13. 7   1.3 History of Australian Cocoa Industry In 1997 Dr. Barry Kitchen, at the time Research Director of Cadbury Schwepps (Australia) a major Australian confectionary company, proposed a study to research the feasibility of growing cocoa in Northern Australia (Diczbalis 2010, p.9). This study was based on the premise that there is already a thriving world-cocoa market (Diczbalis 2010, p.9). According to Yan Diczbalis et al. in an Rural Industries Research and Development Corporation (RIRDC) report, there are “forecasts of sustained increases in demand/consumption of cocoa products against a backdrop of concentrated supply and risks to production” (2010, p.xvi). For example, West Africa has had chronic labor shortages as well as increased pests and diseases on their cocoa crop. Cadbury Schweppes believed that Australia held superior science and technology, which would be able to make an Australian cocoa industry competitive with those of the more traditional growing countries. In addition, Australia had the advantage of an existing “well established cocoa confectionary industry producing product for domestic consumption and export….There could [also] be complimentary benefits through investing in cocoa processing facilities in association with sugar mills in northern Queensland” as chocolate often contains over 50% of sugar (2010, p.xxii) . In addition, Australia would have a grower cooperative or business structure creating a vertically integrated system with growing and processing, which is unique to the industry (2010, p. xxii). According to Diczbalis et al., with three principle trial cocoa growing sites (Northern Territory, North Queensland, Western Australia) only one has survived, started by Cocoa Australia but currently managed by Daintree Cocoa Pty. Ltd (Daintree Estates). Mossman is the only site that has been successful, as trial performance at other sites was either poor or sub- economic (2010, p.iii). Around the new millennium, the cane sugar industry faced an economic downturn leaving open land that used to be occupied by sugarcane (Mcinerey 2010). Sugarcane growers then sought out “diversification opportunities [and] cocoa provide[d] a potential new crop to support the sustainability of the existing cropping and horticulture enterprises in the region (2010, p.iii). Many of these farmers, became part of the Daintree Estates team. With the support of Daintree Estates, a commercial entity behind the establishment of 25ha of cocoa plantations on private grower properties in the Mossman district, Far North Queensland has sustained its cocoa industry (2010, p.228-230).
  • 14. 8   1.4 The Role of Daintree Estates Daintree Etates is the world’s first commercial chocolate company to make single origin Australian chocolate. The cocoa plantations are located in Mossman, Queensland. In the RIRDC report, the Mossman plantation was found the most successful of the cocoa trial sites in the study. Cocoa Australia, which originally helped establish the Mossman sites, began with “linkages with Mossman Mill Company Ltd. (co-operative sugar mill) through a development of low GI sugar” (Diczbalis 2010, p.228). The company made the decision to “purchase and process cocoa pods from its grower base and…established an embryonic processing and fermentation facility” (Diczbalis 2010, p. 228). Currently, Daintree Estates has established it’s ground as the only commercial Australian cocoa growing company. The company began with a commitment and passion from its founders and growers, which ensured its success in both growing and processing cocoa on a commercial scale. This type of “grower co-operative or business structure…[is] vertically integrated growing with processing, manufacturing and marketing…captur[ing] the full value of the product” (Diczbalis 2010, p.10). Daintree Estates has been covered by various local newspapers and featured on television and radio programs (Daintree Cocoa Pty. Ltd. 2011-2012). The Australian cocoa industry, however, is not always met with such praise and enthusiasm. In an article on Tava’s website, an Australian chocolate company, the Australian cocoa industry is met with opposition based on three principles: 1. It is unnecessary, 2. It is a waste of precious water in Australia. And 3. It is unfair to the third world countries whose farmers still struggle to make a living from the profits of cocoa (2006). Nevertheless, Daintree Estates is not set back, and according to Director, Tim Davies, Daintree Estates sees their significance in becoming a cocoa industry leader in the region… actively seeking to engage with small cocoa producing communities in Oceania countries such as Papua New Guinea, Vanuatu, Samoa and more. We believe we have a moral and ethical responsibility to assist these communities gain expertise and grow their cocoa economies, to give them more leverage against the large multi-nationals who want to control pricing. We believe we can help them improve their bean quality and operational efficiency to make them more profitable (2013 pers. comm., 13 March).
  • 15. 9   1.5 Purpose of Study In 1998, “international cocoa supply, demand and price forecasts were reviewed together with the current constraints and advantages for an Australian industry” (Diczbalis et al. 2010, p.9). At a world meeting in 1998, Cadbury Schwepps presented a scenario that within five years, “world cocoa consumption would be approximately 3,260,000t. Typical market forecasts were for growth in cocoa consumption of 3% per annum from the emerging and re-emerging markets of Asia and Central and Eastern Europe and 1.5 to 2% for the mature markets of Western Europe and North America. At such consumption levels, forecast supplies would potentially be exceeded and cocoa stocks would be reduced to almost nil” (Diczbalis et al. 2010, p.9). According to Diczbalis et al., additionally, cocoa quality was diminishing in more traditional cocoa growing regions like Africa, Brazil and Asia due to political instability, cocoa plant disease, domestic trade and industry issues in West Africa, and liberalized markets lowered quality assurance. Cadbury Schwepps was concerned “as a major end user of cocoa” and “made a compelling case for investigating an Australian Cocoa industry” (Discbalis et al. 2010, p.9). According to the short documentary, Chocolate Supply Crisis 2012, new reports indicate that Australia is heading towards a “chocolate supply crisis” (2012). According to David Guest, Professor of Plant Pathology at Sydney University, “A major international cocoa processor, Barry Callebaut, recently warned that annual cocoa production in 2020 would have to rise by 25%, or 1 million tons, to keep pace with demand. However our ability to sustain even current production levels is threatened by climate change, land degradation, pests and diseases, alternative crops, labour shortages and political instability” (The Conversation 2012). With all these aspects considered, this rapidly growing luxury industry is important to look at in relation to “sustainable” development practices. As cocoa rapidly grows as an industry, so does the use of unsustainable patterns in developing/third world countries such as West African countries and countries in the Pacific. The goal of my particular study is to take past research about the sustainability of chocolate one step further in analyzing the unique, emerging industry in Australia, the only fully developed country that produces cocoa, only recently part of the global cocoa industry with a vertically integrated production model. What is the role of the Australian cocoa industry in the global cocoa industry as a whole? What can Australia learn from other countries and what can other countries learn from Australia?
  • 16. 10   2.0 Methodology 2.1 Choosing Daintree Estates I chose to do a case study of Daintree Estates when looking at the overall Australian cocoa industry because after conducting Internet research, I found that Daintree Estates is currently the only company commercially producing chocolate in Australia through a vertically integrated model; from bean to bar. After looking on the website, there was contact information available for me to make initial contact with Tim Davies, Director of Daintree Estates. After expressing interest via email to Davies, I received positive feedback and enthusiasm. Therefore, I knew that researching Daintree Estates and approaching the various stakeholders was feasible and would provide me with a wide range of information for my research study. 2.2 Choosing Locations of Study and Duration of Stays After initial email contact with Davies, he offered to introduce me to the growers who supply cocoa to Daintree Estates. I knew, that it would be possible, and most valuable to meet the growers in person. All of the growing is done in Far North Queensland in Mossman, a small rural town surrounded by the tropical Daintree Rainforest. Davies began emailed me with further information about the company and the growers and informed me that after the beans are dried, they are sent down to Melbourne, Victoria a large city, for the final stages of manufacturing and creating the chocolate products, which are then sold to the consumer. I then thought it would be important to spend some time in Melbourne to observe production and manufacturing, and more effectively analyze the sustainability of Australian cocoa industry as a whole. I decided to spend three weeks in Mossman and two in Melbourne since Mossman has four estates to study that do the growing in addition to the fermenting and drying while Melbourne only has the processing/manufacturing stages to study. Spending more time in the initial stages of cocoa production would give me information to more effectively compare Australia as a cocoa growing country to the more traditional cocoa growing countries since they primarily engage in the first steps of the industry (growing, fermenting, and drying). 2.3 Finding Interview Subjects After I initially emailed the contact email available on Daintree Estates’ website; info@daintreeestates.com, I received a response from Davies that said he would connect me to
  • 17. 11   the other interview subjects I needed to sufficiently conduct my research. I made sure I had subjects who would be able to represent each of the stages involved in the industry and effectively assess the QBL of sustainability: Stages involved in the cocoa industry:  Growing  Fermenting and Drying  Processing/Manufacturing  Marketing QBL elements  Social Aspects Examining how people’s livelihoods and culture are affected by the cocoa industry.  Economical Aspects Examining the costs of starting and keeping the industry as well as the economic return from the chocolate as a final product to all of the stakeholders involved in the industry.  Ecological Aspects Examining the benefits and degradations that the cocoa industry offers to the natural environment and land.  Governance Aspects Examining how larger forces in society influence the industry. I decided to first go to Mossman, Queensland to see the foundation of Daintree Estates, where the growing and fermenting and drying stages take place. I decided to start from the beginning of the industry, therefore, interviewing the growers first. Since my initial contact was with Davies, the Manager, I utilized a snowball method, and he provided me with Terese Puglisi’s email. Terese Puglisi is the Sales Representative and part of a cocoa growing family. Terese then connected me to every other grower in Mossman: Darryl Kirk, a grower and in charge of the fermenting and drying processed, Don Murday, a grower, and John Goodman, the only organic grower.
  • 18. 12   Terese then introduced me to different places and people I could study to examine the marketing strategies of Daintree Estates. For instance, Terese told me to go to “Coffee Works” that has chocolate samplings and sells Daintree Estates chocolate, and provided me with Suzie Wharton’s phone number who runs “Chocoholic tours” in Melbourne, and according to Terese, heavily emphasizes Daintree Estates chocolate and products. After interviewing those in the industry who are involved in the initial stages of making Australian origin chocolate, I knew I would need to interview the upper management in order to effectively examine the industry as a whole. These people are in charge of communications so I had been communicating with them throughout the planning process of my research project and already had their contact information. This included the Davies, and the Managing Director, Lance Sparrow. Both Davies and Sparrow are based in Melbourne and were able to teach me about and introduce me to the processing and manufacturing stages that happen in the city. 2.4 Designing and Conducting Interview Questions The QBL served as a basis for designing interview questions. I used the intersection of each of the QBL elements (social, ecology, economic, and governance) and each of the stages of cocoa production and manufacturing (growing, fermenting/drying, transport, production, manufacturing, and marketing) to create a matrix of questions (see Appendix A) as a guide to the data I needed to collect. The matrix utilizes the combination of the QBL with the concept of a Life Cycle Assessment (LCA). As described by Augustine Ntiamoah and George Afrane, the LCA, “determines the potential environmental impacts, throughout a product’s life cycle, from raw material acquisition through production, use, end-of-life treatment, recycling and to final disposal (i.e. cradle-to-grave.)” (2008, p.1736). I designed my interview guides (Appendix B and C) by creating questions that addressed all the questions in the matrix corresponding to the lifecycle stage the interviewee is involved with. For example, if I interviewed a grower, I made sure I addressed all of the questions in the “growing” column. For each intersection of QBL element of sustainability and stage in cocoa production, I created 2-4 key questions. Note that each interview guide allowed for additional, impromptu questions and probes depending on the answers the interviewee gave and if they talked about unknown and unexpected details.
  • 19. 13   I conducted my interviews with the growers at their homes and with Darryl Kirk at the fermenting and drying site. I conducted the interview with Lance Sparrow at the home where I was staying in Melbourne as my host works for Daintree Estates. I interviewed a total of six people. Each interview lasted about fifty to ninety minutes and took place between the dates of April 6, 2013 to April 24, 2013. I began the interview with a general question, allowing the interviewee to talk about his/her role in Daintree Estates as a whole. I then moved on to more specific questions, addressing social aspects, ecological, economic, and governance aspects as it relates to his/her role in the company, Daintree Estates. I asked these questions as the issue came up, going with the flow of topics that the interviewee was talking about. I did, however, make sure I received answers to all the questions in the corresponding questions at the end of the interview. I always ended with: “Is there anything else you would like to add.” If I found that I missed critical data when analyzing data after the interview, I emailed the interviewee with brief questions that could easily be answered. I made audio recordings using my laptop and took notes on my laptop for each interview. Before each interview, I ensured the individual signed the written consent form I created and printed out (See Appendix D). Interviewing was my primary data collection method. Sustainability encompasses so many elements, combinations of elements, and complicated opinions of people, that the best way to ensure I received all the data possible to assess how sustainable the Australian cocoa industry is while being as objective as possible was to have people talk about it. Sometimes, people came up with comments that were useful sustainability measures that are unique to Australia and have never been discovered before, therefore, if I had done a different method like a survey, I would have limited my own assessment of the industry, only receiving information on selective aspects. Therefore allowing for extrapolation in an interview and considering all comments ensures for a more objective and thorough analysis on my part. 2.5 Using Participant and Indirect Observation Observing a research participant’s work by participating and/or unobtrusively and indirectly observing was a method I used to fill any gaps of information in an interview and to experience the work involved in the cocoa industry first hand for a better understanding of the processes. This was an excellent way for me to gather data as well as give back to the
  • 20. 14   stakeholders of Daintree Estates who so generously put aside hours to help me out with my study. My participant observation included picking beans on the Whyanbeel Valley and Goodman Estate, taking the beans out of the pods, turning the ferment of the beans, using the grader to sort the beans, and bagging the dry beans to get ready to ship. All of my participant observation included me stepping back and indirectly/unobtrusively observing as well to see how the workers interact and work without a guest. After each observation I took notes on every detail that answered a question in the matrix within the appropriate stage and what I observed in terms of each of sustainability element in the QBL. I then added these notes to my overall notes, which included those from interviews sorting each note into the appropriate stage and QBL element. My observations lasted from forty-five minutes to half of the day and were conducted between April 9, 2013 and April 21, 2013. Observation allowed for see sustainability of the Australian cocoa industry first hand by participating in the supply chain. This was not available to do through secondary research since the practices and equipment were often unique to the industry. In addition, this made it easier to understand and know exactly how some stages operated since purely hearing it from an interviewee allows for incorrect interpretation. 2.6 Conducting Content Analysis The final stage of my research was conducting a content analysis to determine more information about the marketing stage of the cocoa industry. I gathered newspaper articles, blogs, websites, brochures, posters, and pamphlets to effectively assess firsthand how marketing and publicity of the cocoa industry address the elements of the QBL. I took notes on common and/or similar words and phrases used in the content that addressed the QBL elements. After analyzing all content, I combined my notes and grouped words and phrases into categories based on which elements from the matrix of questions it addressed. I counted the results to determine majorities and added my final findings into the overall notes in the marketing section. For example, if a majority of the content used words like “sustainable” or “eco-friendly,” I put that note in the ecological section of the marketing stage. Content Analysis was necessary to look at the hard facts of marketing and assess the success in terms of sustainability on my own accord rather than taking the word from the stakeholders in the industry who may have biases.
  • 21. 15   2.7 Organization of Data and Paper I organized my data the day I completed a research session of an interview, observation, or content analysis. When I returned home after a day in the field, I typed up the notes I took in an organized chart with elements of the QBL intersecting with each stage of production. For the interviews with the growers, I made a separate chart since the growing stage was more complicated with four different growers all operating their own way. This chart listed the growers along the far left column and the QBL elements along the top row. The entire chart was the growing stage (see Appendix F). I then organized all relevant notes into the appropriate section. For example, John Goodman mentioned his organic fertilizers. I put organic fertilizers in the John Goodman row and ecological column. I had a separate chart for all of the other stages, listing the stages along the far left column and the QBL elements along the top row (see Appendix G). The final organization of results combined processing, manufacturing and transportation since they were all related and each had minimal notes. After all of my research notes were organized into appropriate sections, I analyzed the results, assigning each note to a sustainability score based on a scoring system I created (see Appendix E). Using this score system was the best way to represent sustainability since it is a very loaded term. The score system enabled me to include many different aspects under one number that appears as a figure that anyone will understand. For the growers, I added up each individual section (i.e. John Goodman ecological section or Puglisi economical section) and found the mean average score for each individual section. Darryl Kirk’s interview notes were placed into both growing and fermenting and drying since he was involved in both stages. Then, I added up each score for each QBL element average score from each grower and found the mean average score for each QBL element for the growers overall. For every other stage, I added up all the scores for each QBL element and took the averages for my final score that appears in my results. Finally, I added up all of the averages of each QBL element for each stage to get an overall average score for the sustainability of each stage individually. In addition to scoring my original research, I also took notes on the four QBL aspects of the cocoa industry in Ghana from two journal articles. I chose to do a case study of the cocoa industry in Ghana due to Augustine Ntiamoah and George Afrane’s article, which laid out a Life Cycle Assessment of the cocoa industry, closely resembling the sustainability assessment I
  • 22. 16   conducted with my original research. I used Doussou Traoré’s article to supplement due to information missing to effectively compare Ghana’s cocoa industry to the notes I had on Australia’s cocoa industry. I then organized these notes into the four elements of the QBL and found overall sustainability scores for each QBL element in Ghana’s cocoa industry. I used my final scores of Ghana’s industry as an example to show the differences between a traditional cocoa country and the Australian cocoa industry in sustainability I organized the body of my paper into six broad sections, five to analyze each stage within the Australian cocoa industry, and one to analyze the cocoa industry in Ghana as a case study traditional growing country comparison to Australia. Each broad section consisted of five subsections, four of which assessing each element of the QBL for that particular stage, and one of which assessing the overall culture of sustainability for that particular stage. The section on Ghana had these five aspects as well, but assessing the overall QBL element and culture of sustainability for the industry. Having each stage isolated enabled me to thoroughly assess the Australian cocoa industry without making sweeping generalizations and inaccurately analyzing my data. Including a case study of another country’s industry enabled me to show how Australia differs from the culture of sustainability of the global cocoa industry (as Ghana is the second largest cocoa producer (Fairtrade Foudation 2011, p.3)) to make my results more meaningful. 2.8 Challenges and Limitations My data presented limitations because the Australian cocoa industry is quite small and only starting out with one company currently growing and producing chocolate commercially. With this, it was difficult to remain objective during research since most of my information was coming from stakeholders involved in and passionate about Daintree Estates. I had to be careful to not create a study that was a promotion of one company rather than looking objectively at the industry as a whole. In addition, some of the information I needed to gather was unavailable. For example, I had read that cocoa growing also took place in Innisfail in Far North Queensland. In order to accurately assess the Australian cocoa industry as a whole, I would need to research all places involved. I was not able to find any contact information for the growers in Innisfail after asking around and researching online. Furthermore, due to Daintree Estates’ use of outside companies for processing and manufacturing, such as Melba Coffee & Tea, Corvina, and Mariott Industries, even after initial approval to go to Melbourne to see these places in action, the
  • 23. 17   companies schedules were unpredictable. I was not able to see processing/manufacturing stages in person due to the companies’ unplanned conflicts. I ended up asking Lance Sparrow for information about those companies, which I recognize will introduce biases. I searched for information on the Internet and there was no sources on the information I needed so Sparrow was the only source available. 2.9 The Research Participants The research participants, primary affiliation, and role in the study are separated into the different locations of work with Daintree Estates.  Mossman, Queensland, Australia o Gerard Puglisi – Cocoa Grower and Grower Director (interviewed, participant observation) o Terese Puglisi – Sales Representative (interviewed) o Don Murday – Cocoa Grower (interviewed) o Darryl Kirk – Cocoa Grower, Manager of fermenting and drying beans (interviewed and participant observation) o John Goodman – Organic Cocoa Grower (interviewed and participant observation) o Vicki Ward – Removes beans from pods (indirect and participant observation) o Jan Ward – Removes beans from pods (indirect and participant observation)  Melbourne, Victoria, Australia o Lance Sparrow – Managing Director (interviewed) o Tim Davies – Director (extensive email communication) 3.0 Results and Discussion Results are presented as average scores of scored notes from interviews, observations, and a content analysis combined. The notes were assigned to categories in the matrix of questions and subsequently, fit into a category within the sustainability score chart (see Appendix C) to determine the final score. Each note, in each category of the matrix was combined and an average for each category as well as for an overall culture of sustainability was calculated. The scores mean the following in terms of sustainability:
  • 24. 18   1: poorly sustainable 2: some sustainable efforts 3: good sustainable efforts 4: mostly sustainable 5: very sustainable Discussions are integrated throughout the results in the “culture of sustainability” subsection for each stage of the Australian cocoa industry. 3.1 The Sustainability of the Growing Stage The growing stage combines four different growers and their estates, (Terese and Gerard Puglisi of Whyanbeel Valley Estate, Darryl Kirk of Shannonvale Estate, Don Murday of Mango Park, John Goodman of Goodman Estate) whom had operations which varied slightly from their fellow growers. This stage was the least sustainable stage of the cocoa industry in Australia, with an overall score of 3.56, still, however, falling between good sustainable efforts and mostly sustainable. 3.1.1 Ecological – Growing Overall ecological sustainability for growing in the Australian cocoa industry is 3.37. For example, the Puglisis utilize equipment from the cane farm, therefore not purchasing or using unnecessary resources for manufacturing equipment. This received a score of 4. Darryl Kirk’s farm does not use a lot of fertilizer since, according to Kirk, it breaks down easily and quickly with sun and water, which received a sustainability score of 3. Patterns All of the growers had cleared land already available to them to start a cocoa plantation, therefore not diminishing biodiversity in the Daintree rainforest. If not used for cocoa, the land would have been wasted. Every grower received a score of 4. This fit into the category on the scoring chart of “biodiversity is not harmed, regeneration may be slightly present” under 4, ecology, and growing on the sustainability scoring chart. All growers did have a mono-crop cocoa plantation with the same set up. See Figures 2 through 5.
  • 25. 19   Figure 3 Whyanbeel Estate Figure 4 Shannonvale Estate Figure 5 Mango Park Figure 6 Goodman Estate Variations The grower’s use of fertilizers varied and all growers had a different type of water pump for irrigation. Three out of the four growers (The Puglisis, Don Murday, and Darryl Kirk) mentioned the use of chemical fertilizers on their cocoa trees. They all alluded to the fact that not a lot of fertilizer is required and rarely needs to be sprayed. All three were confident in the fact that they would never go organic. Don Murday even mentioned that he plans to go “eco”
  • 26. 20   using less toxic fertilizers. For all three, their fertilizer use received a sustainability score of 3. John Goodman differed from the other growers, very committed to organic growing even with trouble with the Malaysian Pod Borer pest that recently wiped out all of his trees. John Goodman’s use of organic fertilizers received a sustainability score of 5. Being organic does bring difficulties as well. Goodman is susceptible to many pests like the pod borer, which reduces his growing efficiency. The swarming black beetle (Rhyparida) and fruit spotting bug (Amblypelta nitida) (see figure 7 and 8) are two common pests that greatly damage the fruit (see figure 9). This pest susceptibility received a score of 2. In terms of water pumps for irrigation, the Puglisis and Don Murday use a diesel pump, and received a sustainability score of 3 since the water source is close, requiring less energy. John Goodman has an electric pump, which pumps water from underground and received a score of 3. Darryl Kirk also has an electric pump but mentioned his desire to use solar energy for the pump in the future, and received a sustainability score of 4. See figure 10 for example of a water pump. Figure 7 Swarming black beetle (Rhyparida) Figure 8 Fruit spotting bug (Amblypelta nitida) – common pest – common pest
  • 27. 21   Figure 9 damaged fruit from fruit spotting bug Figure 10 Puglisis’ diesel water pump 3.1.2 Social - Growing Overall social sustainability in the growing stage scored 4.04, the highest overall scored QBL element amongst the growers. Patterns Every grower alluded to the job of growing cocoa as rewarding in some way. Don Murday said, “cocoa is very satisfying to grow, especially being one of the first in Australia to grow it.” This comment received a sustainability score of 5. Darryl Kirk called cocoa growing a “hobby,” which received a sustainability score of 4. Terese Puglisi mentioned that her children greatly enjoy picking with her and Gerard Puglisi. In Jetstar Magazine’s article, “Chocolate Romance,” Gerard Puglisi mentioned that picking is “family bonding time” (2012). This received a sustainability score of 5. John Goodman said he would never go back and still wants to give growing a “good go” since his Malaysian pod borer took over. His desire to keep going received a sustainability score of 4.
  • 28. 22   Variations The only considerable difference between growers was that John Goodman was exposed to more bugs during picking. During participant observation of picking, his youngest son who was helping out, was stung by a wasp because there are wasps nests in the trees and he had to go inside for the rest of the day since he had an allergic reaction. This introduces some environmental issues when staying organic if pests can be a health risk, falling into the sustainability score of 2. There was also a wasp’s nest in the Puglisi farm, but there were more bugs overall at John Goodman’s place. 3.1.3 Economic - Growing Overall economic sustainability of the growing stage scored 3.79. Most of the notes taken for the economic sustainability of each of the growing estates lied close to the sustainability score of 5. For example, John Goodman was paid AU$1000 per year to go organic and use the land when getting started. This fit into the category on the scoring chart of “growers get enough/plenty economic return for the amount of work that they do.” Patterns All growers are paid $700 per ton of cocoa beans which each of them mentioned was above the world price of $200 per ton. This still, amongst growers, was not the best economic return (according to the growers), but livable and reasonable. This fact received a sustainability score of 3. Variations John Goodman’s economic sustainability varied the most from all the growers. Due to Goodman’s start up status as “organic” he was supported financially with AU$1000 a year to go organic and use the land, in addition to compensation and extensive tractor maintenance when the Malaysian pod borer caused Goodman to lose his organic status. This enabled him to keep going organically with out an economic loss. Goodman’s average economic sustainability score is 3.67.
  • 29. 23   3.1.4 Governance - Growing Overall sustainability of governance in the growing stage scored 2.60. Most of the notes taken for the social sustainability of each growing estate were close to having good sustainable efforts. For example, according to John Goodman, when the original company, Cocoa Australia, came to Mossman to help cocoa farmers start up, there was an organic consultant that the company employed as incentive and support for growers to grow cocoa organically, however, the consultant was only employed at the beginning of the establishment of the industry. This note received a sustainability score of 3. Patterns All of the growers did address a positive connection to the upper management who work in Melbourne at one point during the interview. John Goodman mentioned that he can voice his opinion through Gerard that will then get down to Melbourne, Terese Puglisi mentioned that Daintree Estates is like a “family,” Don Murday mentioned the excellence of a vertically integrated system, and Darryl Kirk mentioned that overall he enjoys working with the people down in Melbourne. These results received 4s and 5s. Variations Although all the growers were positive about management in Melbourne, a couple of them did mention frustrations, in addition, with governance and room for improvement. Don Murday expressed his frustrations with upper management in Melbourne: “I’m frustrated…people down south don’t communicate to us well enough about what they’re doing. I have concerns about quality control issues. They seem too focused on research…trying to reinvent ferments or reinvent roasting and trying to do things differently with all the research...Whereas I would like to see them focusing on just making good quality chocolate.” The above comment received a sustainability score of 2. Darryl Kirk has similar frustrations with quality control, including marketing the chocolate syrup as “gourmet” when it is not made with the quality ingredients that gourmet chocolate sauce should be made with.
  • 30. 24   Rather, the chocolate sauce is made with ingredients synonymous with cheap chocolate sauce at the grocery store, according to Kirk. This comment received a sustainability score of 1. 3.1.5 Growing Culture of Sustainability Although receiving the lowest overall score of any of the stages of the Australian cocoa industry, the score for growing sustainability was still high and can lead to a sustainable future for the industry. The aspects of sustainability in the growing stage that truly stood out were the strong commitment to cocoa farming, the pure pleasure involved in the cocoa farming, and the ability to recognize ecological impacts but balance with efficiency. The biggest issue in the growing stage was the sustainability of governance. All of the growers had to originally respond to an advertisement about starting up as a cocoa farmer. This conveyed a genuine interest in growing for the industry. Upon being asked the question “Would you ever think about stopping cocoa farming?” they all said no. Every grower was genuinely passionate and knowledgeable about growing cocoa, eager to learn more to grow cocoa more efficiently in the future. I believe this attitude towards the practice is present as cocoa farming is not the Australian farmers’ sole income, in addition to being paid decently for their cocoa. In a traditional growing country like Indonesia, cocoa farming in Sulawesi alone is “the principal income for more than 500,000 Sulawesi families” (Community Solutions International 2010). Many of those cocoa farmers are “among the 2 billion people living on $2 a day” (Fairtrade Foundation 2011, p.2). The commitment and genuine happiness with cocoa farming was especially evident with John Goodman, due to his excitement and willingness to keep going even after having to start from scratch on his 2.5 hectares of cocoa after the Malaysian pod borer wiped all of his trees out and he temporarily lost his organic status. When asked about fertilizer, the farmers that were not organic were conscious of the amount of fertilizer used. Although none of the plantations were planted under shade, all of them were created on land that already existed and would have gone to waste if it was not for cocoa; therefore, biodiversity was not diminished, as can often be the issue with other countries. According to Franzen and Mulder, “when prices are low cocoa farmers plant new trees, often by clearing new forest rather than replanting existing cleared areas” (2007, p.3836). Governance is the only sustainability aspect of the QBL that can be majorly improved in the growing stage. I do believe, with projections of moving many of the operations that are
  • 31. 25   currently in Melbourne, up north to Mossman, governance will improve because there will be less of a geographical divide between the growing and production. That being said, it is a step in the right direction that Terese Puglisi is the Sales Representative and Gerard Puglisi is the Grower Director and both are able to easily communicate with the other growers in Mossman. Therefore, although it can greatly improve, governance is expected to grow more sustainable and has promise for the future with a good start currently. 3.2 Sustainability of Fermenting and Drying in the Australian Cocoa Industry The sustainability of the fermenting and drying stages is a broad category, ultimately including every part of the industry performed after the beans are picked and before they are shipped to Melbourne. This stage received a score of 3.69. 3.2.1 Ecological – Fermenting and Drying Overall ecological sustainability of the fermenting and drying stages received a score of 3.50. This score considered the machinery energy output used during these processes (see figure 12), including machinery in sorting the beans after being dried and closing the bags to get ready for being shipped to Melbourne. For example, the grader machine (picture prohibited), which was used to separate large and small beans and eliminate any too small beans and debris, was high powered using electricity, while still using man power to turn the cylinder in the middle and send the beans down to the cylinder through a chute. One man usually does this two-part job. This was given a score of 3. The ferment did not require any machinery and utilized banana leaves (see Figure 11), and received a sustainability score of 5. Daintree Estates also has plans to utilize solar energy for the drier to make it far more efficient, using minimal energy and an efficient design. Figure11 Beans fermenting with banana leaves
  • 32. 26   Figure 12 Cocoa bean drier and fan 3.2.2 Social – Fermenting and Drying Overall social sustainability of the fermenting and drying stages received a score of 3.57, in between good sustainable efforts and mostly sustainable. This score considered splitting pods, getting the pods ready for the fermenting process, transportation of the final dried beans and work involved in these processes. For example, Darryl Kirk used a sharp machete to split the pods open by hand. Kirk was very confident, splitting the pods this way week after week, and content doing it. The process, however, still presented an environmental justice issue, putting Kirk’s wellbeing on the line if the machete were to slip. Therefore, this process received a 3. Jan Ward and Vicki Ward, two sisters, work with Darryl, taking beans out of the pods to get them ready for the ferment. They were very happy about their jobs, thinking of it as a fun break from the gardening that they usually do (See Figures 13, 14, and 15). Their work with Darryl received a sustainability score of 5.
  • 33. 27   Figure 13 Bean removal with Vicki and Figure 14 Getting beans ready to ferment Jan Ward Figure 15 Removing beans from pods – participant observation
  • 34. 28   3.2.3 Economic – Fermenting and Drying Overall economic sustainability of the fermenting and drying stages of the Australian cocoa industry received a score of 3.67. The sustainability assessment included the efficiency of the processes to produce the most amount of economic return, the cost of the equipment, and the value of and economic prospects of innovative, original ideas for these processes. For example, Lance Sparrow has an idea for an efficient bean drier that will also utilize solar energy. This will save the company money and also be more efficient. Therefore, this aspect received a sustainability score of 4, fitting into the category on the score chart of “machinery working toward innovative, unique, and efficient ideas.” 3.2.4 Governance – Fermenting and Drying Overall sustainability in governance of the broadly defined fermenting and drying stage received score of 4.00. This included two key aspects. One aspect was the quality control for the beans that is performed after the beans are fermented and dried. This received a score of 5 because quality of the ferment is actively checked. The second aspect was based off the interview with Darryl Kirk who is in charge of the fermenting process. Darryl Kirk mentioned that the dark chocolate “has a fruity punch…I don’t know [what makes it that way] but I’d like to learn.” Darryl Kirk mentioned that the “fruity punch” may come from the ferment but he does not know enough to change the way it’s done. Darryl Kirk’s reflection on lack of education of this process received a sustainability score of 3. 3.2.5 Fermenting and Drying Culture of Sustainability The tasks performed by hand, the sense of community, and the potential to use renewable energy in the future stood out as creating the overall culture of sustainability for the broadly defined fermenting and drying stage. Splitting the pods is currently done by hand, significantly saving energy since the possibility to use an automated pod splitter shown in the RIRDC report was bypassed. In addition, taking all of the beans out of the pods is done by hand, and creates a great sense of community as observed through participant observation. In comparison, Brazil has a machine powered pod splitter and trommel to take the beans out (Diczbalis 2010, p.100). Although I do
  • 35. 29   recognize the great increase in efficiency with such machinery, currently, Daintree Estates is handling as much cocoa as it can while still being successful, and operations by hand for Daintree Estates specifically is the most sustainable option since there are not enough pods to make splitting by hand inefficient at this stage in the industry. Splitting and taking beans out by hand creates a sustainable balance of community and diversifying work, as the two sisters working mentioned that it is nice to do something different once a week. Sparrow’s innovative automatic, solar powered bean dryer greatly impressed me. It is an innovative, efficient, and energy saving way to dry the beans. I believe that this idea is a good projection of the creativity the Daintree Estates team has as well as the ability to keep sustainability in mind, which is extremely promising to sustain the industry in Australia and world wide as other countries can adopt Australia’s innovative ideas to improve sustainability of the world wide cocoa industry. 3.3 Sustainability of Processing/Manufacturing The processing/manufacturing stage was the second highest scored stage, with an overall sustainability score of 3.73. This score considered processes from when the beans left Mossman to go to Melbourne, to when the chocolate was made into product and packaged. 3.3.1 Ecological – Processing/Manufacturing Overall, the ecological sustainability of the processing/manufacturing stage received a sustainability score of 3.25. This considered aspects such as whether or not ingredients processed with the pure cocoa was local, parts of the pod and plant used to make the product, environmental impact of processing/manufacturing machinery, and future plans for this stage. Daintree Estates imports the cocoa butter used to make the final chocolate product. According to Sparrow, “the technology is not yet in Australia but it could be.” Currently, without a press to make the cocoa butter, many of the small pods picked are rejected when they could be used to make cocoa butter. This received a sustainability score of 3 as it currently wastes a lot of useful natural resources, but there still is a potential for the technology in the future. Extensive energy powered machinery is used in the processing and manufacturing of the cocoa. The energy intensive machinery includes a sieve to eliminate any harmful debris, an
  • 36. 30   electric or gas powered roaster, that will roast the beans at 160 degrees Celsius, an automatic bean dropper to the cooling tray, a high powered fan that cools the beans, a winnower that removes the beans’ soft shell, a shaker that ensures a precise amount of air is blown through the mixture, a grinder to grind the nibs at least twice depending on the recipe, a refiner where three stainless steel wheels rotate quickly and pass through at least twice, a conch, which requires extensive energy taking about twelve hours (According to Sparrow, “time depends on size and efficiency of the unit and the target particle size of the chocolate you want to get down to. The more you conch, the finer the chocolate becomes.”) to grind the stones, the tempering machine which lowers the cocoa’s temperature to 28 degrees Celsius first, then quickly raises it to 31 degrees, the injector that injects the final processed cocoa into the chocolate bar molds, conveyor belt that automatically shakes the molds to eliminate air bubbles, the fridge used to solidify the chocolate into bars, and a wrapping machine. Melba (the roasters for Daintree Estates) is a gas driven factory and Corvina (the rest of the processing/manufacturing) is a combination of gas and electricity. Overall, the machinery used mostly non-renewable energy, and received a sustainability score of 2. Some of these manufacturing processes were performed by machine when other chocolate factories have done them by hand (MrChocolateTV 2009). This difference received a score of 1. 3.3.2 Social – Processing/Manufacturing Overall, the social sustainability of the processing stage of the emerging Australian cocoa industry received a score of 4.67. This score was comprised of the health benefits that result from how the cocoa is processed or what it is processed with and the wellbeing of workers involved in the processes. Health benefits that were embedded in the chocolate during process served as the focus for the social sustainability score. This included processing the chocolate with the world’s first low glycemic index sugar (low GI), originally developed by Dr. Barry Kitchen, who initiated setting up the technology for the special sugar at the Mossman Sugar Mill. According nutrition scientist, Joanna McMilan-Price, in an article by Pamela Wilson, “Research has shown that very high glucose levels after meals, called glucose spikes, are damaging to our arteries and various blood vessels.” Wilson stated, “Eating low-GI foods means you avoid those spikes and dramatic falls in blood-glucose so you get a much steadier stream of energy…therefore reducing risk of heart disease and other chronic diseases.” In addition, low GI
  • 37. 31   can help with weight control since glucose spikes in high GI foods “stimulate hunger,” as well as store insulin, which make it more difficult to burn fat (Wilson 2011). This one of a kind ingredient processed into the cocoa, received a sustainability score of 5. In addition, Sparrow has a vision to use chocolate as a carrier for a range of potentially different drugs. Sparrow said in an email, “These might include some of the commonly available ones on the market now (i.e. we can deliver them better) or they might be a functional food extract which may aid in the maintenance of general health and well being (e.g. high fiber, high antioxident chocolate).” According to Sparrow, no chocolate company has ever created chocolate drugs. This future plan to process cocoa with embedded health benefits received a social sustainability score of 4. The wellbeing of the workers was also considered in the packaging stage once the chocolate bars are all made. Melba is a family business, run by two Greek cousins who create their own conditions within the factory. According to Sparrow, “they create their own conditions within the factory but they are pretty clean and tidy and always have things well organized according to prevailing regulations governing roasting and coffeee production.” These conditions received a score of 5. Corvina is a food manufacturing business and must focus on maintaining preserving and growing business with a very strict set of regulations, according to Sparrow. This received a score of 3. Daintree Estates partners with a company called Mariott Industries. According to the company’s website they are, “committed to supporting people who encounter barriers in finding employment. Our team has particular experience in successfully finding employment for individuals with an intellectual disability, autism and aspergers” (Marriott Industries). According to Sparrow, the workers love to do the work because they feel as though they have a purpose in life. Sparrow says that his dream is to ultimately take a couple of the workers each year from Mariott Industries and train them all the way through the production process, teaching them recipe development. This aspect of processing/manufacturing received a sustainability score of 5. 3.3.3 Economic – Processing/Manufacturing Overall economic sustainability of the processing/manufacturing stage of the cocoa industry in Australia received a score of 3.00. This score considered workers’ wages, and the economic investment in machinery. The machinery roasting the beans is shared with a coffee roasting company called Melba and all subsequent processes are with a chocolate and
  • 38. 32   confections company called Corvina. According to Sparrow, Melba already wanted to learn how to roast cocoa so they can use the cocoa to make drinking chocolate eventually to sell in their café. By using Melba, Daintree Estates benefits economically since the company takes their chocolate to sell in their shops. Melba charges Daintree Estates a flat rate of $5 per kilo of cocoa beans and converts the money they earn from the chocolate into equity. If Melba does well selling Australian origin drinking chocolate, Daintree Estates will help take their business to Mossman. This economic relationship received a score of 4. The economic aspect of providing an opportunity for disabled people to work and receive an income at minimum wage (high in Australia at $15.96 per hour (Australian Government 2013)), received a score of 4. Importing cocoa butter received a score of 1. 3.3.4 Governance – Processing/Manufacturing Overall sustainability of governance of the processing/manufacturing stage of the cocoa industry in Australia received a score of 4.00. This score considered Daintree Estates as a large company engaging with community, and the relationship of Daintree Estates with the companies that help with processing and manufacturing. According to Sparrow, “It is always our intention to try to push back into the community we are involved in…ultimately, down the track we want to do more with them,” (referring to Mariott Industries.) This received a score of 4. The mutual agreement between the coffee company, Melba, and Daintree Estates for roasting and then selling the final product shows a connection of upper managements communicating well with each other to achieve a greater ends received a score of 4. 3.3.5 Processing/Manufacturing Culture of Sustainability Daintree Estates’ main notable aspects in processing/manufacturing are the agreement that Daintree Estates has with Melba; they will roast if they can sell and promote final product, and the relationship with Mariott Industries. Other large cocoa processing facilities, such as Hershey’s, do not show the same social values as Daintree Estates has uniquely demonstrated. For example, workers at Hershey’s chocolate factory complained of being “captive and
  • 39. 33   underpaid” (Ryan 2011, p.6). Therefore, Daintree Estates has begun an excellent culture of sustainability for the cocoa industry in Australia in the processing/manufacturing stages. 3.4 Sustainability of Marketing in the Australian Cocoa Industry Overall sustainability of marketing scored 3.78, the highest scored stage of the Australian cocoa industry overall. Tastings, retailers, pamphlets, posters, and Internet sites and articles for publicity were considered when assessing the sustainability of marketing. 3.4.1 Ecological - Marketing Overall ecological sustainability of marketing in the emerging Australian cocoa industry received a score of 3.50, considering referencing to the environment and materials used. The majority of the materials assessed used phrases such as “eco-friendly,” “environmentally sound,” “sustainable,” “environmental responsibility,” “from the naturally exotic Daintree rainforest,” and referred to using “natural rainfall” to their advantage. These words and phrases present in much of the marketing received a sustainability score of 4 since it brings attention to the companies awareness of the natural environment and use of its resources. 3.4.2 Social – Marketing Overall social sustainability of marketing in the emerging Australian cocoa industry received a score of 5.00, considering aspects such as reactions people had to marketing strategies, and the future for marketing Daintree Estates’ work with social justice. One of the marketing strategies includes having a monthly tasting booth set up at the Mossman Gorge, a popular recreation spot. After observation, it was confirmed that people greatly enjoy learning about Daintree Estates, their mission, and eating local chocolate. This was effective in prompting people to purchase Daintree Estates chocolate, smiling and sharing with family. This marketing strategy received a score of 5. In addition, Sparrow has a vision to market the “Journey around the Pacific” within this calendar year. Promoting social connections – “Journey around the Pacific” According to Sparrow, a traditional cocoa growing region in the Pacific like Samoa only pays about $100-120 per ton for beans (once they are grown, fermented, dried and bagged).
  • 40. 34   Samoa has never made the step forward, from solely being a bean producer. Sparrow has a plan for Daintree Estates to make origin chocolate from countries around the pacific like Samoa, taking their beans at a premium price so they will get more money and be empowered to invest more in their plantations. Daintree Estates will educate growers about sustainable growing practices to help them see the missing link between the environment and growing. Eventually, Sparrow said, he wants to “take them all the way up the chain,” from bean to bar. Daintree Estates will market the “romantic history” of how the whole area of the Pacific islands was discovered to tell a story of chocolate while improving livelihoods of cocoa farmers. Emotional appeal and promotion of social justice activism for this future plan, gave this marketing strategy a score of 4. 3.4.3 Economic - Marketing Overall, the economic sustainability of the marketing stage of the emerging Australian cocoa industry received a score of 3.50. This score consisted of an assessment of economic benefits of marketing unique aspects of production and the economic return generated by marketing techniques. Daintree Estates’ proposal to make chocolate as a drug and market it as such has potential to increase sales, therefore receiving a score of 3, as this is a future projection for marketing with no indication as to the amount of economic return based on popularity that will come from such a product. The next aspect considered was the benefits of promoting Daintree Estates through a television program. Daintree Estates was featured on Landline, ABC’s program on rural issues. Sparrow said that after the program aired, within 12 hours, Daintree Estates was sold out and had to turn people’s orders away. Sparrow recognizes that media promotions like television and selling over the internet are very profitable but can generate too much economic return, where supply cannot keep up with demand. This received a score of 4. 3.4.4 Governance - Marketing Overall, the sustainability of governance in the marketing stage of the emerging Australian cocoa industry received a score of 3.13. This score took into account the target audience of Daintree Estates as a whole, retailer stores that sell Daintree Estates chocolate, as well as the greater marketing forces such as television and the Internet. Coffee Works served as
  • 41. 35   an example as a greater marketing force as a retailer. Coffee Works has the opportunity for an extensive chocolate tasting, however, the Daintree Estates chocolate only appeared in one small corner in the Chocolate portion of the shop with a sign that read, “Queensland Origin Chocolate,” and it was not available for tastings. This retailer portrayal of Daintree Estates chocolate received a score of 2. The power of being featured on the television program, Landline, was very successful, but also has caused them to sell out and turn customers away in the past. This received a score of 3. Selling over the net has been a great way for them to publicize business as well with social media sites, and received a score of 5. According to Sparrow Daintree Estates, however, does struggle to know exactly who their audience/customer base is, since the customers are all over the board, from single people who love chocolate, to families with children, receiving score of 2. In addition, Sparrow says Daintree Estates wants to promote “embracing new batches,” so customers will be expecting difference and variability in their chocolate. This is a tool to market so people will think of difference as a good perk to Daintree Estates chocolate, changing the overall mindset of customers. This received a score of 3 as it may not to appeal to all chocolate consumers. 3.4.5 Marketing Culture of Sustainability Even though marketing was the highest ranked stage of the Australian cocoa industry, Sparrow said himself, marketing “could be better,” but it is hard to assess since there is a fine line between how good Daintree Estates’ marketing can be, and how they will make sure demand does not exceed supply. Daintree Estates has shown some good marketing peaks such as being featured on Landline when they sold out within 12 hours, however, that cannot always happen. Therefore, I believe marketing right now is very sustainable and strategically not as good as it could be so the company does not get a bad reputation for always being sold out. I think that it is intriguing that Daintree Estates is Australia’s little secret right now, however, this can’t always be the case. To be truly sustainable, marketing needs to increase, but the company needs to find a way to increase growing and production as well. The future marketing of the “Journey around the Pacific” is a huge step in the right direction to sustainability. This will truly balance marketing and supply with the bonus of social justice. Daintree Estates will have more supply because they are acquiring beans from elsewhere, increase demand, with intrigue of a “romantic journey” around the pacific in a
  • 42. 36   chocolate bar, and a greater emotional appeal and social responsibility, empowering smallholder farmers in third world countries. According to the Fairtrade Foundation, currently traditional cocoa growing countries lack major technical support. For instance, “governments in producing countries levy high export taxes on cocoa beans to boost national economies at the expense of farmer incomes. But too little has been re-invested in supporting farmers by providing technical training to improve yields, develop co-operatives, build business capacity or improve market access” (2010, p.9). This is what Daintree Estates hopes to change around the Pacific, and may be the ultimate marketing strategy that gives the company even higher marks in sustainability in the future. 3.6 Case Study Comparison: Sustainability Culture of the Cocoa Industry in Ghana The culture of sustainability of the cocoa industry in Ghana was chosen due to Augustine Ntiamoah’s and George Afrane’s study which closely resembled my assessment, entitled, “Environmental impacts of cocoa production and processing in Ghana: life cycle assessment approach.” With some missing categories of what was assessed in the study of the Australian industry, Ntiamoah and Afrane’s article was supplemented with Doussou Traoré’s report with the Food and Agriculture Organization of the United Nations. Sustainability scores were applied based on my original scoring system used for the Australian cocoa industry assessment. The purpose of this assessment is to compare a traditional growing country’s culture of sustainability to Australia’s emerging cocoa industry’s culture of sustainability. Discussion and comparison is included in each subsection of 3.6. 3.6.1 Ecological – Ghana Overall ecological sustainability of Ghana’s cocoa industry received a sustainability score of 2.56, considering fertilizer pollution, machinery, biodiversity, and resource use. Ntiamoah and Afrane mention “the analysis revealed that production and use of fertilizers and pesticides were a major cause of the environmental burdents in the cocoa production,” mentioning eutrophication and eco toxicity. This received a score of 1 (2008, p.1737). There was also biodiversity loss, major production and consumption of fossil fuels in boilers and roasters due to the energy intensive nature, large amounts of solid waste from pod husks, and emissions of halogens and CFCs during production of pesticides. Each of these ecological aspects received a score of 1. Production relying on natural weather patterns received a score of 3. Finally, no
  • 43. 37   agricultural machinery, cocoa shells processed and packed for sale as animal feed, and the process of sun drying the beans, each received a score of 5. Ghana scored significantly lower than Australia in its cocoa industry’s ecological sustainability due to its prominent use of toxic fertilizers, land clearing, waste, and natural weather patterns. Every one of the cocoa farmers in Australia interviewed said that there was no need to use a lot of fertilizer, going “eco” with the fertilizer, or organic. In addition, new land is cleared in Ghana to create land for cocoa, whereas Australian land was already clear after sugar cane lost economic value (Mcinerey 2010), or in Darryl’s case, he bought empty land and was putting it to good use. The divide between Ghana and Australia in terms of fertilizer toxicity and biodiversity loss was the largest difference between the industries, Australia coming out on top. Although, Ghana did have more prominent less sustainable aspects, they did exceed Australia in terms of sun drying beans and using no agricultural equipment whatsoever. Australia will have a sun drying system in place in the future but uses tractors irrigation misters. Australia’s system of using agricultural equipment is efficient, and Ghana’s system may not be quite as efficient, requiring more labor than necessary. The amount of efficiency would need to be researched further in order to fully determine whether it would be feasible to eliminate all agricultural equipment while still remaining sustainable. 3.6.2 Social - Ghana Overall social sustainability of the cocoa industry in Ghana received a sustainability score of 1.00. This score was based off of two criteria: Husks used as mulch presented a significant source of disease, receiving a score of 1, and the cocoa industry lacked competitiveness and people’s incomes were deteriorating, causing excessive labor for very little pay and subsequently, poor livelihoods, and received a score of 1. The Fairtrade Foundations mentions, “as a result of the lack of government investment in infrastructure, villages in cocoa growing areas typically have poor education and healthcare services and lack electricity and decent sanitation with water only available from communal wells” (2011, p.9). Because Australia is developed with a stable government and economy, the cocoa industry has the ability to advance with greater education in scientific fields required to have proper farming practices, therefore reducing health risks like what was present in Ghana. For example, both Lance Sparrow, and Dr. Barry Kitchen involved in Daintree Estates have
  • 44. 38   extensive biomedical/biotechnological knowledge. This access to better education and stable government means that “Daintree Cocoa Pty. Ltd. is obliged to abide by Australian law, which covers workplace relations, worker’s rights and compulsory workers’ insurance, making the cost of labour relatively high in Australia” (Davies pers. comm. 2013). 3.6.3 Economic – Ghana Overall economic sustainability of the Ghana cocoa industry received a score of 2.50. This considered two criteria: commercialization of the pulp and pod husks, and received a score of 4, and low and unstable farm-gate prices involving a vicious circle of lower investments, lower productivity and ultimately, deteriorating incomes. This received a score of 1. Commercializing parts of the pods will increase proceeds by expanding the market to more than just chocolate products. This is one thing that Australia is also starting to do. For example, Daintree Estates uses the shells of beans to make soap. The difference is that with Daintree Estates’ vertical integration, more of the profit will go back to the growers and workers in the company, which is not the case in a traditional cocoa growing country like Ghana. Currently growers receive about 3.5 percent of the final value of the chocolate bar, therefore, other commercial products may follow suit. Daintree Estates is a different kind of company that has ultimate dedication involved since traditionally, growing in Australia is not even considered to be an option, therefore, they do not even come close to a “vicious circle” of unstable prices, lower investments, low productivity, and deteriorating incomes. Even if this did happen, the farmers would not be as devastated by the results, since they are not solely dependent on cocoa as their primary income. Therefore, a good economic structure must be sustained to sustain the Australian cocoa industry as a whole. 3.6.4 Governance – Ghana Overall sustainability of governance of the cocoa industry in Ghana received a score of 2.00. This was based on two criteria: the Cocoa Processing Company’s decision to initiate animal feed, which received a score of 3, and the volatility of the commodity market, which received a score of 1. The Cocoa Processing Company made a good decision to use resources wisely to the advantage of the company. The issue here is that there is no information as to whether or not the
  • 45. 39   growers are involved in this decision and whether or not they receive benefits from this decision. In Australia, the growers were involved in this decision making process as Terese Puglisi is the Sales Representative and part of a grower family. She was very knowledgeable about the expansion of using more of the plant for more products. 3.6.5 Culture of Sustainability – Cocoa industry in Ghana Ghana’s overall sustainability score was 2.01, which consisted of many very low scores. With the industry dependent on an unstable economy and serving as the main cash crop for the country, growers do not directly benefit, and desperate measures are often taken that create ecological unsustainability in order to increase yields. 4.0 General Discussion Overall, the emerging Australian cocoa industry has good sustainable efforts and a slight mark away from being mostly sustainable. The most unique aspect of the Australian cocoa industry that benefits all four elements of the QBL is its vertically integrated structure. This leads to a strong connection between all stakeholders and stages in the industry, and gives governance a good score for sustainability. The growers and managers have a strong education background in agriculture, general science, and technology, which gives ecological sustainability high marks. Due to the industry’s connection with local companies (Corvina, Melba, and Marriott Industries) and high cost of labor in the country, the economic element also has very good sustainable aspects, which leads to strong social sustainability as the growers receive enough of an economic return to maintain good livelihoods. In addition, the current overall culture of the industry is very pleasurable for the growers with a lot of perks in terms of pioneering the industry in Australia, creating a community, and learning something new about farming. Therefore, social sustainability received the highest marks of all the four QBL elements. Although overall sustainable, the Australian cocoa industry can improve on governance in the growing stage and overall scale of the industry. The majority (three of the four) of the growers felt that upper management did not address their concerns about quality control. One of the growers mentioned they have too much of a focus on research. Communication between Melbourne and Mossman stakeholders ultimately needs to improve in order to keep growers
  • 46. 40   involved and enjoying the job. The other major issue is that often, the industry cannot keep up with demand. The strong customer base is sustainable, however, Daintree Estates needs to increase the number of cocoa growers involved. The company is on the right track for this, encouraging farmers who may be interested to contact Daintree Estates on the website, and currently training two more growers, according to Sparrow. In addition the future plan to integrate beans from other countries will increase output. As a representative of the Australian cocoa industry, Daintree Estates does significantly surpass the global cocoa industry based on a case study of Ghana. See figure 16. Figure 16. Australia and Ghana cocoa industries – comparison of sustainability scores According to the Fairtrade Foundation With around 70 per cent of the world’s cocoa being grown in West Africa, particularly Côte d’Ivoire and Ghana, cocoa growers are typically subsistence farmers on a very low income. They grow staple foods such as yam, plantains and cassava and perhaps sell small amounts of fruit or vegetables to the local market. Cocoa is grown alongside these
  • 47. 41   food crops and provides the main cash income that farmers rely on to pay school fees, medical bills and purchase other necessities for the average household of six people. With one main harvest a year, farmers have to budget carefully throughout the rest of the year and often need to take out expensive loans. It is impossible to save money and by the time the next harvest begins farmers are desperate to sell their beans to get cash (2011, p. 9). It is difficult to conclude that Ghana should learn from Australia and subsequently improve their industry due to the fact that currently has inadequate infrastructure, poor education, lack of technical support, and poor market information (Fairtrade Foundation 2011, p9). These poor aspects are so ingrained in the political, social, and economic systems in Ghana that it is hard to turn it around quickly. Therefore, Daintree Estates can act as a leader in the industry, and with the idea to launch the “Journey around the Pacific,” is currently on the right track. This program, once initiated, will stand out as one of the most sustainable parts of the industry because they are working with farmers on a smaller scale, individually visiting different countries and teaching farming practices and how to make chocolate to vertically integrate more cocoa industries around the world while still producing chocolate in Australia a local level. …be more economically literate. All of life is diversity. That means unique human individuals as well. As individuals we are unique, as groups, as cultures, as races, and again, we need to have adaptation to that diversity, rather than homogeneous one standard consumer monoculture image that is affecting people worldwide. Therefore, for human and ecological reasons, we must adapt economic activities to diversity. That means to respect realities of different places and cultures. – Helena Norberg Hodge 5.0 Conclusion The purpose of this study was to assess four elements of sustainability, known as the Quadruple Bottom Line (ecological, social, economic, and governance), in the emerging cocoa industry in Australia to ultimately assess the sustainability of the industry. My original hypothesis was that the Australian cocoa industry would be very sustainable and much more so than other cocoa industries around the world. This was influenced by my initial browse of
  • 48. 42   Daintree Esates’ website and my knowledge of Australia as a developed country with many natural protected areas (World Heritage sites) and an extensive conservation efforts throughout the country. My hypothesis was proven correct by an assessment of the Australian cocoa industry with my developed scoring system, as well as an assessment of a case study cocoa industry in Ghana with the same scoring system. 5.1 Key Points In each stage and each element of the QBL, Australia scored between “good sustainable efforts” and “very sustainable.” The social sustainability rated the highest of all QBL elements with a score of 4.37, above “mostly sustainable,” and the marketing stage received the highest sustainability score of all the stages with a score of 3.78, very close to being “mostly sustainable.” The following aspects exemplify the high sustainability score of the social element of the Australian cocoa industry:  Vertical integration  Strong community between growers and workers in Mossman  Strong connection between industry and local communities (Melbourne and Mossman communities)  Growers overall satisfaction with involvement in industry  Customer attraction and satisfaction to the industry The following aspects exemplify the high sustainability score of the broadly defined Marketing stage in the industry:  Power of the internet and television  Future to market “Journey around the Pacific”  Recognition of natural environment and Daintree Estates’ environmentally responsible values In Ghana, the highest scores of the elements of the QBL in the cocoa industry were still much lower than the lowest scores of the Australian cocoa industry QBL elements. The highest score in the ecological element of the cocoa industry in Ghana was 2.56, which did not even reach “good sustainable efforts.” Therefore, cocoa industries in traditional cocoa growing countries like Ghana can learn from Australia’s industry. Australia will ultimately take the